California Arbitration
Arbitration is when parties to a dispute agree to resolve a conflict outside of court. The parties hire a third person, usually a retired judge, and their agreement determines the rules of how the arbitrator makes his or her decision. There is no jury and, usually, no appeals. Even if the arbitrator makes a mistake, the parties usually have to accept the arbitrator's decision. Thereafter, a court will enforce the arbitrator's judgment the same way it enforces its own judgments.
Employers require arbitration as a mandatory term of employment. Arbitrators charge approximately $450 per hour, and you may be required to pay half or all of the arbitrator's fees.
Many arbitration agreements shorten the statutes of limitations or require that their employees bring their disputes to a panel of employees first for resolution, thereby subjecting the employee to the company attorneys before the employee receives legal representation. Others limit how much fact finding (discovery) the employee can do prior to the arbitration.
Arbitration in California
In California, an employer can require its employees to agree to arbitration as a term of employment. However, if an agreement has too many unfair or one sided terms, California courts may refuse to enforce the arbitration agreement or sever the unfair terms.
If you ignore the arbitration agreement, at some point a court may find you in breach of the arbitration agreement. In that case, you will not be able to proceed with an arbitration or in court.