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As we've previously written, enforcing employment arbitration agreements in California can be a complicated endeavor.
In a September 2025 decision, a California appellate court looked beyond the terms of an employee's arbitration agreement to determine whether said arbitration agreement was unconscionable (and thus unenforceable). In the case, Gurganus v. IGS Solutions LLC, the court ruled that an employee's arbitration agreement was unconscionable when read in connection with the same employee's confidentiality agreement.
Specifically, the employee executed an arbitration agreement, which states that all cases brought by either an employee or employer would be arbitrated. On the same day, however, the employee signed a confidentiality agreement, which stated: "[a]ny disputes under this Agreement may be brought in the state courts and the Federal courts for the county in which the Company's principal place of business is located, and the parties hereby consent to the personal jurisdiction and exclusive venue of these courts."
Because it is more likely an employer would bring suit in court to enforce the confidentiality agreement while an employee's potential claims would generally be brought in arbitration, the court concluded that the arbitration was not in fact mutual. Accordingly, the court held that the arbitration agreement was unconscionable and thus unenforceable.
This holding has implications for any employer doing business in California hoping to enforce an arbitration agreement. When considering a motion to compel arbitration, courts may look at other agreements signed by an employee to determine the enforceability of an arbitration agreement. Employers should consult with legal counsel to review arbitration agreements and other employment agreements in the context of this case.
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