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With the equitable measures read into the payment statute by the court, employers are now free from certain punitive applications, so long as they can demonstrate that the failure to timely remit arbitration fees is explained by a reasonable excuse or show they acted in good faith. A divided california supreme court on monday upheld a state law requiring employers and businesses to promptly pay arbitration fees in worker and consumer disputes, rejecting claims it is preempted by the federal arbitration act. in a significant ruling, the california court of appeal has determined that employers who fail to pay prehearing arbitration fees on time forfeit their right to compel arbitration. Specifically, the court ruled that arbitration agreements providing for individualized proceedings of employment related claims are enforceable under the federal arbitration act.

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