Brown

Defendants Dillard’s Department Store and Dillard’s Store Services (collectively “Dillard’s”) require employees to agree to arbitrate employment-related claims under what it calls “Dillard’s Fairness in Action Program.” Plaintiff Stephanie Brown was an employee at one of Dillard’s department stores in California until she was fired.

Brown filed a notice of intent to arbitrate a wrongful termination claim .under the Fairness in Action Program. Dillard’s refused to participate in the arbitration proceedings. Brown then filed suit in Los Angeles County Superior Court. At that point, Dillard’s decided that it wanted to arbitrate her claim. Dillard’s removed Brown’s suit to federal court and moved to compel arbitration. Assuming the truth of Brown’s allegations, the district court denied the motion, holding that the arbitration agreement was unconscionable and thus unenforceable under California law.

We conditionally affirm on a different ground, and we remand to the district court. We do not express a view on whether the agreement was unconscionable under California law. Rather, assuming the truth of Brown’s allegations, we hold that when an employer enters into an arbitration…