Can Your Employer Make You Go to Arbitration for a Denied Workers’ Comp Claim?

 Posted on May 05, 2025 in Denied Claims and Appeals

If your workers’ compensation claim has been denied, you may expect to take the matter before the state workers’ compensation board. But in some cases, workers are surprised to find that their employer is demanding arbitration instead. This can be confusing and frustrating — especially when you are already dealing with an injury and financial uncertainty.

Our firm takes pride in helping injured workers navigate the complexities of the California workers’ compensation system. Our Hollister, CA workers’ compensation lawyers offer free consultations and are committed to making sure injured workers are treated fairly, whether through traditional hearings or alternative dispute resolution.

When Is Arbitration Used in Workers’ Comp Disputes?

Arbitration is a form of dispute resolution where a neutral third party — the arbitrator — hears the case and issues a binding decision. It is less formal than a court hearing but still requires preparation and legal knowledge. In California, workers’ compensation claims are typically resolved through the Workers’ Compensation Appeals Board (WCAB). However, in rare circumstances, arbitration may be introduced through an employment contract or collective bargaining agreement.

Some employers — particularly larger corporations or unionized workplaces — may include arbitration clauses in an employee’s contract. These agreements can apply to general employment disputes, but they cannot be used to override your right to seek workers’ comp benefits through the state system. 

Can Employers Legally Require Arbitration in a Workers’ Comp Case?

In California, workers’ compensation is governed by state law, and the system is designed to be the exclusive remedy for job-related injuries. This means that your right to file a claim through the WCAB generally cannot be waived or replaced by an employer-mandated arbitration agreement.

The California Labor Code specifically protects an injured worker’s right to seek benefits through the state process. Any employment agreement that attempts to force arbitration instead of workers’ compensation is not enforceable. This means that workers’ compensation disputes can only be arbitrated if you agree to arbitration. 

If your employer is pressuring you to attend arbitration instead of going through the WCAB, it is critical to speak with a knowledgeable workers’ compensation attorney who can review your case and the terms of your employment agreement. Arbitration may be in your best interests, but you should only move forward with it if you are certain that it is what you want to do. 

Let Our Hollister, CA Workers’ Compensation Attorneys Protect Your Rights After a Denied Claim

Arbitration may sound like a quicker or easier option, but it is not always in your best interest — especially if your legal rights under state workers’ compensation law are being sidestepped. At our firm, we will review your case, explain your legal options, and ensure you are not being misled or pressured into giving up your rights.

Call Cramer + Martinez at 408-848-1113 to schedule a free consultation with a San Benito County, CA workers’ compensation attorney. We have been helping injured workers for three decades, and we are ready to fight for the benefits you deserve.