A recently published California Court of Appeal decision, Morales v. Superior Court, provides an excellent example of why the precise wording of an arbitration agreement matters. A relatively small difference in contractual language ultimately determined whether an employee’s discrimination and wrongful termination claims would be decided in private arbitration or in court. For employees with potentially significant discrimination, retaliation, or wrongful termination claims, that distinction can be extremely important because the chances of winning a case in court are generally much higher than in arbitration.
Sylvia Morales worked for San Diego Gas & Electric Company (SDG&E) for nearly 20 years. After SDG&E terminated her employment in 2024, Morales filed a lawsuit alleging disability discrimination, failure to provide reasonable accommodation, failure to engage in the interactive process, retaliation, and wrongful termination in violation of public policy. Her claims were based on California’s Fair Employment and Housing Act (FEHA), the California Family Rights Act (CFRA), and California public policy. SDG&E responded by asking the court to force Morales into arbitration.
And initially, the employer won. The trial court concluded that Morales had agreed to arbitrate her claims and ordered the case into arbitration. Morales challenged that ruling in the California Court of Appeal, which reached the opposite conclusion.








