Employee Arbitration Clause Enforceable, Unconscionable Under Washington Law

A former Circuit City retail associate is entitled to a jury trial in a dispute against his former employer despite having signed an agreement to resolve all employment-related claims through arbitration, the Ninth Circuit Court of Appeals ruled recently. In Al-Safin v. Circuit City Stores, Inc., the Ninth Circuit upheld the invalidation of an arbitration agreement, explaining that it was overwhelmingly biased in favor of the employer and unconscionable under Washington law.

All non-unionized Circuit City employees were required to sign the arbitration agreement as a condition of employment. This decision has no effect on arbitration provisions in collective bargaining agreements. Specifically, the court found seven provisions offensive: