In 2013, Kmart hired Adrian Lopez, then age 16, as a cashier. Before beginning work, Lopez received online training, and in order to do so, he had to acknowledge receipt of various Kmart forms, including an arbitration agreement. One month after turning 18, Lopez filed a putative class action lawsuit against his employer for breaches of California’s wage and hours laws. Kmart sought to compel arbitration.
Under California Family Code § 6710, minors (under the age of 18) may enter into contracts, but they have a right of disaffirmation “before majority or within a reasonable time afterwards.” In Lopez v. Kmart Corp., Magistrate Corley, of the Northern District of California, held that Lopez disaffirmed his arbitration agreement with Kmart by filing the lawsuit within one month of turning 18 and that one month was a “reasonable” time under § 6710.
