OTO, L.L.C. v. Kho

Summary

The court held that the employment arbitration agreement was unenforceable because it was imposed through exceptionally oppressive and misleading circumstances and required the employee to surrender accessible wage-claim procedures for a complex, litigation-like arbitral process. The agreement was therefore unconscionable under generally applicable contract principles and did not violate federal arbitration law. The court also held that the trial court improperly vacated the Labor Commissioner's award and remanded for proceedings on the employer's de novo appeal.