The California Supreme Court reversed a decision of the court of appeal. The court held that an arbitration agreement which an employee was compelled to sign as a condition of employment and which obligated the employee to forego administrative resolution of wage claims was both contrary to public policy and unconscionable.
Frank Moreno was a former employee of Sonic-Calabasas A, Inc., which owned and operated an automobile dealership. As a condition of his employment with Sonic, Moreno signed a predispute agreement that required both parties to submit their employment disputes to binding arbitration under the Federal Arbitration Act (FAA), in conformity with the procedures of the California Arbitration Act.
