Arbitration Clauses in Washington State: What to Know

How Arbitration Clauses Work

An arbitration clause requires disputes to be resolved through private arbitration instead of in court. In Washington State, these clauses are frequently found in technology company agreements, employment contracts, real estate transactions, and consumer service agreements.

Washington's Arbitration Law

Washington has adopted the Uniform Arbitration Act (RCW 7.04A), which governs the enforcement of arbitration agreements within the state. The Federal Arbitration Act also applies to contracts involving interstate commerce and may preempt conflicting state provisions.

Washington courts generally enforce arbitration agreements. However, Washington has been more protective of consumers and employees than many other states. The Washington Supreme Court in Zuver v. Airtouch Communications, Inc. (2004) provided a detailed framework for evaluating unconscionability in arbitration clauses.

When Courts May Refuse Enforcement

• Unconscionability — Washington applies both procedural and substantive unconscionability analysis. Zuver emphasized that courts should look at the totality of circumstances, including whether the clause was presented on a take-it-or-leave-it basis
• Violation of public policy — Washington courts have been willing to strike provisions within arbitration clauses that undermine important statutory protections, such as those under the Washington Law Against Discrimination (RCW 49.60)
• Lack of consideration — The arbitration promise must be supported by mutual consideration
• Recent legislative changes — Washington passed SB 5454 (2018) limiting mandatory arbitration in sexual harassment claims, reflecting the state's evolving stance

Red Flags

• The clause waives your rights under Washington's Consumer Protection Act (RCW 19.86)
• Confidentiality provisions that prevent you from sharing the outcome
• The clause shortens the time you have to bring a claim below the applicable statute of limitations
• Arbitration must occur in a state other than Washington

When to Consult a Lawyer

Consider reaching out to a Washington attorney if your employment agreement or consumer contract includes a mandatory arbitration clause, especially one involving sexual harassment claims or Consumer Protection Act rights. Washington's evolving legal landscape may provide grounds for challenge.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.