California Supreme Court Issues key Arbitration Ruling
1 min read
Oct 17, 2013
Today, the California Supreme Court issued its opinion in Sonic-Calabasas A, Inc. v. Moreno, No. S174475 (October 17, 2013), holding that the Federal Arbitration Act preempts California's rule categorically prohibiting waiver of a Berman hearing in a pre-dispute arbitration agreement imposed on an employee as a condition of employment.
As California employers may recall, the California Supreme Court previously held that it is against public policy and unconscionable for an employer to require that, as a condition of employment, an employee waives the right to a dispute resolution forum established by the Legislature to assist employees in recovering wages owed (such as a Berman hearing). The California Supreme Court held that if one of the parties was dissatisfied with the result of the Berman hearing, it could move to arbitrate the wage dispute consistent with the arbitration agreement, just as a dissatisfied party could obtain a trial in court without such an agreement.
Since then, the U.S. Supreme Court granted certiorari in this case and vacated the judgment. The case was remanded for consideration in light of the U.S. Supreme Court's decision in AT&T Mobility LLC v. Concepcion (2011) 563 U.S. __ [131 S.Ct. 1740], wherein the Court clarified the limitations imposed by the FAA on a state's ability to enforce its rules of unconscionability on parties to arbitration agreements.
The California Supreme Court in today's decision holds that state courts may continue to enforce unconscionability rules that do not interfere with the fundamental attributes of arbitration. While a court cannot refuse to enforce an arbitration agreement simply because it requires the employee to bypass a Berman hearing, the agreement may still be found to be unconscionable if it is unreasonably one-sided in favor of the employer, for instance.
Topics
Featured Insights

Healthcare Alert
Aug 3, 2026
Fixing the Emergency Refill Trap: What California’s AB 1587 Means for Pharmacies

Consumer Crossroads: Where Financial Services and Litigation Intersect
Jul 30, 2026
Should Text Messages be Considered “Calls” Under the TCPA? The Seventh Circuit Says No

Healthcare Alert
Jul 30, 2026
California Courts Sharply Curtail the MICRA Damages Cap in Nursing Home Litigation

Insights for Insurers Alert
Jul 30, 2026
Analyzing a Couple of Cases Involving Exclusions in D&O Policies

In The News
Jul 29, 2026
Hinshaw Authors Contribute Two Articles in Latest Edition of the CCFL Quarterly Report

Webinar
Jul 28, 2026
Cathy Mulrow-Peattie and Sabrina Janeiro Present on Legal AI Technology

In The News
Jul 27, 2026
Scott Seaman Discusses How the Insurance Industry Contributed to the 2026 FIFA World Cup

Privacy, Cyber & AI Decoded Alert
Jul 27, 2026
Compliance Guidance for the New Vermont Data Privacy and Online Surveillance Act (VDPOSA)

Healthcare Alert
Jul 24, 2026
Q&A: Right to Electronic Monitoring Extended to Illinois Assisted and Shared Living Facilities

Press Release
Jul 23, 2026
Insurance Partner Christophe Burusco Joins Hinshaw in Los Angeles

In The News
Jul 16, 2026
Jennifer Driscoll Anticipates Epic Battle Between “Titans of the Antitrust Bar”

