California employers may face harsh consequences for failing to pay arbitration fees on time under a bill (Senate Bill 707) signed by Governor Gavin Newsom on October 13, 2019. The new law go into effect on January 1, 2020.

Under the new law, if an employer fails to pay fees required for the commencement or continuation of an arbitration within 30 days of the payment’s due date, the employer’s conduct is deemed a material breach of the arbitration agreement.

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