California employers should be aware that employees under 18 years old may disaffirm agreements that they sign.
In Lopez v. Kmart, the United States District Court for the Northern District of California held an employee who, as a minor, signs an employment arbitration agreement as part of his or her employment may later disaffirm the agreement and, thus, avoid mandatory arbitration of employment-related claims. The basis for permitting disaffirmation of an agreement signed by a minor is contained in California Family Code Section 6710, which states: “…a contract of a minor may be disaffirmed by the minor before majority or within a reasonable time afterwards.”
California employers that hire minors and require them to sign an agreement where they surrender certain rights to litigate complaints should consult with legal counsel on strategies to enforce these agreements as a result of the Lopez decision.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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