Code of Civil Procedure § 1281.98
The drafting party’s deadline to pay fees in a pending arbitration
The same 30-day fee rule applies to fees that come due during a pending arbitration: late payment lets the employee return to court.
Read the official text at California Legislative Information →
Overview
Code of Civil Procedure section 1281.98 extends the strict arbitration-fee rule to fees that come due after an arbitration is already underway. Where its companion section 1281.97 polices the fees needed to initiate arbitration, section 1281.98 polices the fees needed to keep it going — and applies the same 30-day deadline and material-breach consequence.
The provision closes a gap that drafting parties might otherwise exploit by paying to start an arbitration and then starving it of funds. Under section 1281.98, a late payment during the proceeding is just as consequential as a late initiating payment.
The 30-day rule, mid-arbitration
In a pending arbitration under a mandatory employment or consumer arbitration agreement, if the drafting party fails to pay the fees or costs required to continue the proceeding within 30 days after they are due, it is in material breach of the arbitration agreement.
On such a breach, the employee may withdraw from arbitration and proceed in a court of appropriate jurisdiction, or compel arbitration and seek remedies — and is entitled to the mandatory sanctions of section 1281.99.
Federal preemption
The California Supreme Court addressed whether the Federal Arbitration Act preempts these fee-payment rules in Hohenshelt v. Superior Court. The analysis governs how strictly the deadlines may be enforced against FAA-covered agreements, so confirm the current doctrine before relying on the statute. (See Hohenshelt.)
The interaction of section 1281.98 with the Federal Arbitration Act was addressed in Hohenshelt v. Superior Court (2025) 18 Cal.5th 310.
Practice notes
Track every fee due date throughout a pending arbitration. A missed payment under section 1281.98 can forfeit the drafting party’s right to arbitrate and return the case to court, subject to the FAA-preemption analysis. Pair any election to litigate with a motion for sanctions under section 1281.99.
Related on this site
Practitioner analysis, current as of June 2026 — not the statute itself. Statutes are amended and decisional law evolves; confirm the operative language and current authority at the official source before relying.