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such Clauses are critical to an employee contract because the outline how the parties must respond to a dispute typically a dispute resolution Clause will provide for the preferred dispute resolution process whether mediation or arbitration such Clause can help avoid unnecessary Court proceedings and minimize the amount of time money and resources that may otherwise have to be spent in court yes we understand that employers have received mixed signals about the legality of employer mandated arbitration agreements however as of February 15 2023 a federal court of appeal has affirmed illegality of such agreements in California so at least for now Employers in California may require their employees to execute arbitration agreements as a condition of employment or continued employment