In a notable legal development, a California federal judge has compelled arbitration in a lawsuit against Tesla Inc., involving allegations of age and health discrimination. The case, filed under California’s Fair Employment and Housing Act by former Tesla manager Jeremiah Chee, was directed towards arbitration after the court upheld an agreement Chee had signed.
Tesla Forces Bias Suit Over Firing Into Arbitration : Key Details of the Court’s Decision
U.S. District Judge Thomas S. Hixson dismissed Jeremiah Chee’s arguments against arbitration on Tuesday. Chee claimed that Tesla had concealed the arbitration clause in his employment offer, which he felt pressured to sign. However, Judge Hixson noted that Chee had sufficient time—four days—to review the terms before accepting them, refuting claims of procedural unconscionability due to time constraints.
“The court is not convinced by the plaintiff’s argument that the brief period he had to consider the offer letter contributes to the arbitration agreement’s procedural unconscionability,” Judge Hixson stated.
Examination of the Arbitration Agreement
While Judge Hixson acknowledged that the arbitration clause was somewhat obscured in the document, he ruled that it only showed a minor level of procedural unconscionability. Chee’s inability to demonstrate additional elements of oppression or surprise, which are necessary to classify an agreement as highly unconscionable, weakened his case.
