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.

The appeals court on Friday also ordered a lower-court judge to reconsider a ruling that would have required the state to identify Doe.

Cisco and the state agency did not immediately respond to requests for comment.

(Reporting by Paresh Dave; Editing by David Gregorio)

By Paresh Dave