Thread regarding Cisco Systems Inc. layoffs

Think before you sign

The details regarding a California court ruling last week against Cisco's motion to deny an employee's right to a jury trial should serve as a wake up call to everyone seeking employment, whether at Cisco or somewhere else. The bottom line is that you may not be able to avoid signing an arbitration agreement, even when dealing with a highly ethical company that does not intend to subvert employee rights, but you can learn a lot about the company you are about to join by how that agreement is presented to you and the details of the terms.

The pros and cons of arbitration agreements can be debated but in general, binding arbitration tends to be a less expensive way to resolve employee disputes - something which may be particularly important to small companies that don't have deep pockets. Over the last several years arbitration has also been favored as a way to avoid further clogging up an already overburdened court system Unfortunately though , a big benefit for companies that are concerned with hiding discrimination challenges that can tarnish their reputation is that unlike litigation, arbitration is conducted in a private forum. Noone other than the company involved knows how many discrimination challenges have been leveled at the company or the details of those cases. It's all behind closed doors.

It's no surprise that Cisco would try to force all of their employees to sign binding arbitration agreements but there is a lot to learn from the nature of the agreement. For example: (1) First of all the arbitration terms were "hidden" in a document alleged by it's title to pertain to intellectual property rights which may suggest an attempt by Cisco to deceive. (2) The terms were heavily biased in favor of Cisco. Cisco retained the right to sue the employee however compelled the employee to give up their right to trial. (3) Cisco compelled the employee to agree to split the costs of arbitration. This is not legal.

You may not be able to avoid signing an arbitration agreement when you join your next company but pay attention to it's terms and how it is presented to you. That may tell you a lot about how the company treats it's employees and their commitment to fairness and ethical practices.

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Post ID: @OP+LwiSnV8

5 replies (most recent on top)

to the OP: maybe you might have heard this "rumor" about cisco using different methods to control ex-employees. ( not necessarily legal). this happened to someone located in canada around 2012 ( he was no regular employee - he was at the director-grade IC). no kidding.. we needs balls the size of rocket, to be willing to face cisco's methods.

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Post ID: @yul+LwiSnV8

You are certainly entitled to your opinion and companies like Cisco, Google, HP and others that are now finding themselves slapped with discrimination law suits would appreciate your sharing it broadly. Both arbitration and litigation require a lot effort and can be time consuming and expensive. As to whether it is worth it, it depends upon your particular case and why you want to pursue it. Know that there are other forums which are much less costly and time consuming like the California Department of Fair Employment and Housing where employees can file discrimination complaints without the assistance of an attorney. Many states have such commissions that are empowered to investigate complaints and when appropriate, award damages. A downside is that these venues tend to have huge backlogs and it can be years before your case is addressed.

Some people believe that as long as we do not hold companies accountable for discriminating against their employees, companies will feel free to do it. For these people it may be worthwhile to pursue litigation, arbitration, or alternative means of holding companies responsible for unethical or illegal behavior. If you don't care then fine. That's your business.

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Post ID: @ycl+LwiSnV8

Do you really have the time and money to go through a long drawn-out arbitration process? Maybe ya do, but are ya willing to give 35% of that to your lawyer when ya win?

Stop it already! Unless you have a 'C' in your title, take the faulking money, shut up and move on. You are wasting valuable time, money and energy. Enough!

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Post ID: @hfi+LwiSnV8

If you try to file a lawsuit, it is possible that Cisco will file a motion to disallow your lawsuit and force you to submit to binding arbitration instead. You can oppose this motion and ultimately the court will decide whether to uphold the arbitration agreement. In the case of the agreement signed by Ms. Bark, the judge found the document signed by Ms. Bark to be "unconscionable" and therefore upheld Ms. Bark's right to proceed to a jury trial. Cisco still has the right to appeal and has stated their intention to do so. Note that laws vary from state to state, Cisco is likely to have more than 1 version of the agreement, and lastly and very importantly, please note that I am not an attorney. Best to consult with an employment attorney regarding your particular situation.

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Post ID: @ymp+LwiSnV8

Good info.

What does this mean for those that already did sign but want to file a discrimination suit?

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Post ID: @qwd+LwiSnV8

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