The Private Enforcement of Public Laws in Armendariz v. Foundation Health Psychcare Services

Abstract

In Armendariz, the California Supreme Court held that employers can mandate an agreement to arbitrate as a condition of employment, subject to certain conditions. These conditions make employment arbitration more fair, but it also makes arbitration more expensive, time intensive, and less final. The court has imposed procedural safeguards on mandatory employment arbitrations, circumscribing the employer's advantage in arbitration, and making this particular type of arbitration look more like traditional litigation.

This Note will analyze the court's decision and its influence on employment arbitration in California. Part II will briefly describe the arbitration process. Part III will review the statutory and case law governing employment arbitration. Part IV will analyze the court's decision in Armendariz v. Foundation Health Psychcare Services, Inc. Part V will consider the consequences of this decision. Part VI will briefly conclude.