Timely Payment of Arbitration Fees—If You Snooze, You Lose!
Imagine this: You have worked with your attorney on crafting the perfect arbitration agreement. You have an issue that goes to arbitration and are in the middle of arbitrating when you get notified that the arbitration is being cancelled for non-payment and you are headed back to court. What!?!?
It’s true. If you’re in arbitration (an alternative to going to court), you have to pay certain fees to keep the process going. California law says those fees must be paid within 30 days of when they’re due—unless your arbitration agreement says otherwise.
If you don’t pay on time, arbitration can get shut down, and you could get dragged back into regular court even if you had a valid arbitration agreement. This statute was recently upheld by the California Supreme Court in Hohenshelt v. Superior Court (No. S284498, Aug. 11, 2025).
What this means for you:
- Don’t ignore invoices. Pay them right away, or make sure your team has a reliable system for tracking and paying.
- Build in flexibility. When you draft arbitration agreements, you can write in a little extra time for payments.
- If you miss a payment, act fast. Courts might give you a break if the missed payment wasn’t intentional and it didn’t hurt the other side, but you don’t want to count on that.
Our team is here to help you navigate California’s complex employment laws. If you have arbitration questions, need an arbitration agreement, or need legal assistance, contact us.
Meyers Nave partners with California private, government, and non-profit employers to ensure compliance with evolving employment laws—from employee classification, wage and hour compliance, and workplace policies to required trainings, internal investigations, and dispute resolution.
Our team helps organizations proactively mitigate risk by drafting and updating employee handbooks, implementing arbitration agreements, and ensuring policies align with current legal requirements. When disputes arise, we provide strong legal advocacy in litigation. Stay ahead of legal challenges—contact us to ensure your organization is protected and prepared.
