- Written by Rebecca Hause-Schultz
On August 21, 2017, the First Appellate District in California issued a decision in OTO, LLC. v. Ken Kho, granting a car dealership’s petition to compel arbitration in litigation with its former employee. In that case, employee Kho filed a claim for unpaid wages with the California Labor Commissioner (“Commissioner”) against his former employer, OTO, LLC, doing business as One Toyota of Oakland (“employer”). When employees seek resolution of claims through the labor commissioner, those claims may be resolved either through settlement, through an informal “Berman” hearing, or through the commissioner’s direct prosecution of the action. A Berman hearing is an administrative hearing conducted by the Commissioner to review a wage claim. It is intended to be a speedy, informal, and affordable method for employees to resolve a wage claim.