FAQs on Arbitration
Often a job offer will include an employment contract that you are expected to sign. Understandably, as a prospective employee, you are anxious to be hired, so you may not give much thought to signing the contract. However, every employment contract will be unique, and you must be sure that the terms in the contract reflect the negotiations that lead to the job offer. More importantly, you need to make sure the contract is fair and your rights are protected by consulting with an experienced labor law attorney.
Q: What is arbitration?
A: Arbitration is a type of alternative dispute resolution that handles disputes without going to court. The dispute is decided by one or more neutral arbitrators after the parties present evidence and make arguments in an arbitration hearing. Some hearings also permit questioning witnesses. The rules of arbitration are less formal than a trial, but there are federal and state rules of arbitration that must be followed. Arbitration can be either binding or non-binding. In binding arbitration, the arbitrator’s decision may include an award for damages which is enforceable by law. In non-binding arbitration, the decision is merely “advisory” in nature, and the parties can either accept the decision, or pursue binding arbitration or a trial.
Q: What is an arbitration clause?
A: An arbitration clause is often included in agreements including employment contracts. The primary purpose of an arbitration clause is to require any dispute between the parties pursuant to the contract be settled by arbitration. In other words, if an employee alleges the employer has violated terms of the employment contract, the employee must resolve the dispute through arbitration instead of going to court. The arbitration clause, however, may designate arbitration as either “mandatory” or “voluntary.” Mandatory arbitration requires arbitration, while voluntary arbitration means the parties may chose arbitration by mutual agreement. Most employment contracts include a mandatory arbitration clause because employers generally prefer arbitration. Arbitration clauses can be complicated, and include many terms regarding venue, costs, procedures, scope of disputes, and selection of arbitrators. You should consult with an experienced labor law attorney before signing any arbitration clause to ensure your rights are protected. More importantly, your attorney can identify any unfair terms of the arbitration clause, and employment contract in general, and request modification.
Q: Should I sign an employment contract with an arbitration clause?
A: Whether you agree to an arbitration clause or not will depend on many factors, and you should consult with an experienced labor law attorney before signing any employment contract. You should realize that arbitration clauses, and employment contracts in general, are often written to favor the employer. With that said, your attorney can review the terms of the contract and advocate for your rights. Just as not all employment contracts are the same, arbitration clauses will differ as well. If you are asked to sign an employment contract, be sure to consult with an experienced labor law attorney, despite your eagerness to accept employment. You must protect your rights as an employee and take every step possible to ensure the terms of your employment are fair before signing an employment contract.
Q: Why do employers include arbitration clauses in employment contracts?
A: There are several reasons why employers prefer arbitration rather than a trial. First, arbitration is usually less expensive than a trial. Second, arbitration is considered a private resolution of a dispute between parties, and therefore would not be as public as a trial. Also, an unfavorable ruling against an employer would not be setting precedence for other employees, unlike case law. Third, many arbitration clauses in employment contracts prohibit employees from joining a class action lawsuit. Class action lawsuits are important to challenge wide-spread labor law violations, and employers discourage class actions which could result in significant legal fees, financial liability as well as bad publicity. Finally, because there is an inherent imbalance of bargaining power at the time of hiring, many employers use this advantage by including arbitration clauses that deprives employees of their rights to their day in court. This also provides an on-going advantage to the employer who knows that the employee is restricted by the arbitration clause.
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Srourian Law Firm, with locations in Los Angeles, Westwood, Woodland Hills, and Orange County is experienced in all aspects of employment law including employment contracts and arbitration clauses, and have aggressively represented employees in Los Angeles, Hollywood, Santa Monica, Orange, Irvine, Anaheim, Santa Ana, Newport Beach, Costa Mesa, Fullerton, Tustin, Mission Viejo, San Clemente, Garden Grove, Laguna Niguel, Brea, Fountain Valley, Aliso Viejo, Yorba Linda, Westminster, Laguna Hills, Cypress, and La Habra.
If you or someone you know suffered employment violations due to an unfair employment contract or arbitration clause, you may have certain employee rights under state and federal law, and may be entitled to compensation as a part of the class action lawsuit. Please contact us to speak with one of our lawyers for a free consultation.
Know the Law. Know your Rights.
Most people eagerly await payday in order to pay rent and bills on time, or maybe to splurge a little. Getting a late paycheck, regardless of the reason, is not only frustrating, but it could be against the law. Under California labor laws, employers must pay you on time, or they are violating your rights and breaking the law.
In general, employees must be paid by a certain date depending on whether paychecks are issued every two weeks (bi-weekly) or twice a month (bi-monthly). There are some narrow exceptions that apply to certain types of employees, such as salaried monthly executives, but the vast majority of employees are protected under California Labor Code section 204(a).
California Labor Code § 204(a) (in relevant part)
Labor performed between the 1st and 15th days, inclusive, of any calendar month shall be paid for between the 16th and the 26th day of the month during which the labor was performed, and labor performed between the 16th and the last day, inclusive, of any calendar month, shall be paid for between the 1st and 10th day of the following month.
For example, if an employee is paid twice a month, the pay period is often divided into the 1st through 15 days of the month; and the 16th through the last day of the month. Under California law, employers must issue paychecks no later than the 26th of the month for the first pay period, and the 10th of the following month for the second pay period.
For employees that are paid every two weeks, or weekly, the law requires employers issue checks within seven calendar days after each pay period. Failure to issue timely paychecks could subject employers to significant penalties.
Also, according to California Labor Code section 204(b)(1), Employees have a right to be paid for overtime by the next regular paycheck. That means if you accrue overtime during a particular pay period, those extra wages must be included in the next paycheck. Again, if your employer fails to pay you overtime wage on time, your rights have been violated and you should seek legal advice.
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Srourian Law Firm, with locations in Los Angeles, Westwood, Woodland Hills, and Orange County is experienced in all aspects of employment law including failure to receive paychecks on time and have aggressively represented employees in Los Angeles, Hollywood, Santa Monica, Orange, Irvine, Anaheim, Santa Ana, Newport Beach, Costa Mesa, Fullerton, Tustin, Mission Viejo, San Clemente, Garden Grove, Laguna Niguel, Brea, Fountain Valley, Aliso Viejo, Yorba Linda, Westminster, Laguna Hills, Cypress, and La Habra.
If you or someone you know suffered employment violations as an employee such as not receiving paychecks on times in California, you may have certain employee rights under state and federal law and may be entitled to unpaid wages, interest, attorneys’ fees and costs, and/or be entitled to compensation as a part of the class action lawsuit. Please contact us to speak with one of our experienced lawyers for a free consultation.
Know the Law. Know your Rights.
California labor laws provide many protections to employees that often exceed federal labor laws. Therefore, it is important to know the various state laws designed to ensure your rights as an employee are not violated by employers. Fundamentally, labor laws and regulations are highly specific and often difficult to understand since laws are amended, enacted or repealed regularly, so it is important to consult with an experienced labor law attorney to ensure your rights are protected.
Often, employees do not realize that they have the right to timely, accurate wage statements each pay period with nine categories of information included in each wage statement. A wage statement, or pay stub, is the document an employer must provide employees every pay period that explains how the paycheck was calculated.
According to California Labor Code section 226, there are nine categories of information that must be included in every wage statement:
• gross wages
• total hours worked
• piece-rate units earned and any rate if employee is paid on a piece-rate basis
• all deductions from wages
• net wages
• dates of pay period
• employee’s name and the last four digits of social security number
• full name and address of the employer
• applicable hourly rates.
Some requirements are not required for exempt employees such as salaried employees. Additionally, section 246(h) of the California Labor Code requires employers advise employees each pay period of any paid sick leave they have accrued. While this is not specifically required on each wage statement, many employers include this information on wage statements as a matter of convenience. This information is particularly vital to any employee who seeks paid sick leave, which is guaranteed by the California Sick Paid Leave Law.
ACCURATE WAGE STATEMENTS ARE REQUIRED BY LAW
California law is clear that employers have a legal obligation to provide accurate wage statements to employees each pay period even if a third-party payroll company used. An employer who fails to comply with the law and violates an employee’s rights may face large fines and penalties, even for minor mistakes. The requirements are strict, and must be followed exactly. For example, the mandatory wage information must be on the face of the wage statement. In other words, the law is not being followed if the employee must find the required wage information on another document besides the wage statement.
In addition to possible fines and penalties, an employee has the right to file a lawsuit against the employer for “knowing and intentional” failure to comply with the law. If successful, an employee who has suffered an injury due to inaccurate or missing wage statements may be entitled to monetary damages.
FREE CONSULTATION
Srourian Law Firm, with locations in Los Angeles, Westwood, Woodland Hills, and Orange County is experienced in all aspects of employment law including failure to provide accurate wage statements and have aggressively represented employees in Los Angeles, Hollywood, Santa Monica, Orange, Irvine, Anaheim, Santa Ana, Newport Beach, Costa Mesa, Fullerton, Tustin, Mission Viejo, San Clemente, Garden Grove, Laguna Niguel, Brea, Fountain Valley, Aliso Viejo, Yorba Linda, Westminster, Laguna Hills, Cypress, and La Habra.
If you or someone you know suffered employment violations as an employee such as not receiving accurate wage statements in California, you may have certain employee rights under state and federal law and may be entitled to unpaid wages, interest, attorneys’ fees and costs, and/or be entitled to compensation as a part of the class action lawsuit. Please contact us to speak with one of our experienced lawyers for a free consultation.