California court strikes down IGS Solutions’ unfair arbitration agreement

After her employment ended, Gurganus filed a lawsuit against IGS, alleging disability discrimination, retaliation, failure to engage in the interactive process, failure to provide reasonable accommodations, retaliation under the California Family Rights Act, interference with CFRA rights, wrongful termination, and unlawful business practices under the unfair competition law. IGS moved to compel arbitration, arguing that all claims were subject to the arbitration agreement. The trial court denied the motion, finding the arbitration agreement both procedurally and substantively unconscionable. The court noted that the agreement forced employee claims into arbitration but allowed the employer to bring its preferred claims, such as those related to confidential information, in court. The confidentiality provision was also found to restrict employees from contacting or interviewing potential witnesses outside of the formal discovery process.