The California Court of Appeal held that employees who sign arbitration agreements cannot avoid arbitration by suing related, non-signatory entities under a joint employer theory.
In Edgar Gonzalez v. Nowhere Beverly Hills LLC, the appellate court reversed the trial court's ruling to deny arbitration for related entities, emphasizing the close relation between the claims and the arbitration agreement.
The ruling highlights that an employee cannot attempt to impose liability on related entities without acknowledging the arbitration agreement's relevance to their employment relationship.
The court concluded that the nexus between the employee's claims against non-signatories and the original employment agreement was crucial in enforcing the arbitration clause.
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