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

Event
Apr 23, 2026
Driving Ahead: Insights from Industry Leaders Auto Finance Seminar

Consumer Crossroads: Where Financial Services and Litigation Intersect
Mar 13, 2026
DOJ Settlement with Car Retailer Highlights SCRA Repossession Risks

Privacy, Cyber & AI Decoded Alert
Mar 11, 2026
Compliance Considerations for GDPR Consent in Biotech Clinical Research

Press Release
Mar 4, 2026
Marcia Mueller Named the 2026 Mentorship Award Winner by YWCA Northwestern Illinois

Press Release
Mar 3, 2026
Hinshaw Announces New Administrative Leadership Appointments

In The News
Feb 27, 2026
Hinshaw Partners Examine Implications for Nursing Homes of New Illinois Aid-in-Dying Law

In The News
Feb 24, 2026
Lucy Wang Authors Law360 “Expert Analysis” on Why Attorney Civility Means More in 2026

Press Release
Feb 13, 2026
Hinshaw Team Wins Appeal in Criminal Indictment of Waukegan City Clerk Janet Kilkelly

Press Release
Feb 10, 2026
Hinshaw Trial Team Secures $0 Defense Verdict in $15 Million Auto Accident Trial

Press Release
Feb 5, 2026
Hinshaw Legal Team Secures Directed Verdict in Florida Equine Fraud Case

Press Release
Feb 4, 2026
Hinshaw Celebrates 17 Consecutive Years of Being Named an Equality 100 Award Winner
![[Video] New Regulatory Priorities Under Mayor Mamdani’s NYC Department of Consumer and Worker Protection](/a/web/oHiTWa7kRy3Ht1brq6k4BT/bkMx39/new-york-city-skyline.jpg)
