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Appeals court enforces staffing company arbitration agreement (JD Supra)

May 26, 2017

JD Supra reports a California Court of Appeal ruling regarding arbitration agreements is especially important for employers in today’s ever-evolving gig economy; it facilitates the enforcement of arbitration agreements by companies utilizing the services of staffing companies that have an arbitration program in place. Narciso Garcia signed on for temporary work with a staffing agency. His job application contained an agreement to arbitrate any dispute regarding employment laws. He then received an assignment to work for Pexco LLC, which had not signed the arbitration agreement. Garcia, claiming unpaid wages, sued both the staffing agency and Pexco for violations of the Labor Code and unfair business practices. Per the ruling, Pexco could compel arbitration even though it had not been party to the agreement.