The Ninth Circuit recently cautioned employers attempting to enforce “take it or leave it” mandatory employment arbitration agreements. In Davis v. O’Melveny & Myers (5/14/07) the court found the international law firm’s mandatory employment arbitration agreement was not enforceable. Specifically, it held the agreement was both procedurally and substantively unconscionable and refused to enforce it. Davis was a paralegal with the firm’s Los Angeles office, and was presented with the firm’s mandatory Dispute Resolution Program which included an arbitration agreement. The Ninth Circuit found the firm’s “take it or leave it” arbitration agreement was procedurally unconscionable as it denied employees a choice or opportunity to negotiate. The Circuit Court also found the agreement to be substantively unconscionable because of its one-year notice provision which shortened the statute of limitations for certain claims, and the confidentiality clause, prohibiting disclosure that there was a claim or arbitration. The Circuit Court also found the agreement’s “carve-out” injunctive relief to be overly broad and one-sided. Lastly, the Circuit Court struck down the agreements prohibition against certain administrative actions, thereby invalidating the agreement.