Arbitration

The three key documents that every employer should provide to their employees consists of an employee handbook, a confidentiality agreement, and an arbitration agreement.  In advising small and mid-size businesses, I have found that the majority of these employers not only do not have their employees sign an arbitration agreement, but they are usually not aware of what arbitration even is.  As I’ll explain below, an effective arbitration agreement is the key to keeping employment-based claims out of court, significantly minimizing your attorneys’ fees should an employee file suit, and preventing runaway jury awards.

Maintaining adequate employee personnel files is crucial for several reasons. Personnel files, along with the employee handbook, are usually the first things plaintiffs’ attorneys will request in any employment related lawsuit, and the documents contained therein are often central to the employer’s defense of the case. For example, they may contain a documented history of performance issues and documents laying the foundation for termination. California Labor Code section 1198.5 provides that every current and former employee has the right to inspect and receive a copy of the personnel records that the employer maintains “relating to the employee’s performance or to any grievance concerning the employee.” Employers are also required to give employees, upon their request, a copy of any document that the employee has signed relating to the obtaining or holding of employment, which are usually stored in the personnel file.

So what should go into an employee’s personnel file? …