California appeals court rules no arbitration in Cisco caste bias case

By Paresh Dave

OAKLAND, Calif. (Reuters) -Cisco Systems Inc on Friday lost a court appeal to move to private arbitration a case over alleged caste discrimination in its Silicon Valley offices, where managers of Indian descent are accused of bias against a fellow employee from India.

The networking gear and business software company has denied the allegations. It had argued to a California appeals court that the state's Civil Rights Department, which had brought the case on behalf of a worker identified under the pseudonym John Doe, should be subjected to an employment arbitration agreement signed by Doe.

"As an independent party, the Department cannot be compelled to arbitrate under an agreement it has not entered," the appellate panel wrote.

In a separate order Friday, it told a lower-court judge to reconsider a ruling that would have required the state to identify Doe. The lower court had said the law prevented it from considering whether Doe's family members in India could be harmed by naming him.