What Happens If Arbitration Fees Are Late?

If your employer insists on arbitration, they must follow the rules, including paying fees on time. When they fail, California law gives you the power to shift the process in your favor. 

California Law on Late Arbitration Fees

Many employers include arbitration agreements in employment contracts. These agreements require employees to resolve legal disputes—such as wrongful termination, discrimination, retaliation, or unpaid wages—through private arbitration rather than public court. In most cases, the employer is required to pay all or most arbitration fees. California Code of Civil Procedure §1281.97 and §1281.98 specifically address what happens when employers fail to pay arbitration fees within 30 days of the due date. If your employer misses that deadline, the law allows you to:

• Withdraw from arbitration and take the case to court,
• Ask the arbitrator to enter a ruling against the employer (a default judgment), or
• Compel payment through a motion and recover attorney’s fees.

This rule prevents employers from dragging their feet or using delay tactics to pressure employees into giving up their claims.

Consequences for Employers in Orange County

Courts in California take late arbitration payments seriously. If an employer misses a deadline, judges have repeatedly ruled in favor of employees who chose to move their case to court. The employer may also be ordered to pay court filing fees, your attorney’s fees, and any additional costs you incurred due to the delay. In some cases, your employer loses the right to enforce the arbitration agreement altogether—meaning the case moves forward in court and a jury hears your claim.

What Should I Do If My Employer Pays Late in Orange County?

If you are in arbitration and your employer fails to pay required fees on time, take the following steps:

1. Get written confirmation of the missed payment from the arbitration provider.
2. Talk to a trusted Orange County employment attorney immediately.
3. Decide whether to file a motion to move the case to court or seek default.

Late arbitration payments are more than just a nuisance—they are a violation of your legal rights. An experienced attorney can guide you through each step of the arbitration process, track deadlines, hold your employer accountable, and help you recover damages. 

FAQs

Q: Does the 30-day deadline include weekends and holidays?

A: Yes. The 30-day period includes all calendar days, not just business days. The countdown starts the day after the fee becomes due, even if it falls on a weekend or holiday.

Q: What if the arbitration provider gives them an extension?

A: Even if the provider allows extra time, the legal deadline under California Code of Civil Procedure §1281.97 still applies. You can act if payment is 30 days late, regardless of extensions.

Q: Do I need an Orange County employment lawyer to handle this?

A: It is highly recommended. Arbitration law is complex, and employers often have legal teams. An employment attorney can help enforce deadlines, protect your rights, and move your case forward effectively.

Q: What types of employment cases typically involve arbitration?

A: Arbitration agreements often apply to claims involving wrongful termination, workplace discrimination, harassment, retaliation, unpaid wages, misclassification, and breach of contract. If your employment agreement includes an arbitration clause, your employer may try to force any legal claim into private arbitration instead of court.