On August 11, 2025, the California Supreme Court issued a decision in the matter of Dana Hohenshelt v. The Superior Court of Los Angeles, ruling that the Federal Arbitration Act (“FAA”) does not preempt the California Arbitration Act (“CAA”) provisions that require the drafter of the arbitration agreement to pay arbitration fees within thirty days of the due date in employment and consumer arbitration matters or face the loss of the right to compel arbitration. Furthermore, the Supreme Court concluded that a party’s failure to timely pay arbitration fees is subject to analysis by the fact finder on whether an untimely payment of arbitration fees was the result of willful, grossly negligent, or fraudulent conduct, or merely inadvertence or mistake.