Seyfarth Synopsis. As of January 1, 2020, AB 51 makes it unlawful for employers to impose arbitration agreements on employees as a condition of employment, even if employees are permitted to opt out. But will AB 51 withstand a legal challenge saying that AB 51 is preempted by the Federal Arbitration Act? While courts ponder that question, California employers must
Continue Reading AB 51 Challenge: How Should California Employers Ring In The New Year?

Seyfarth Synopsis. On Thursday, September 5, 2019, the Legislature passed AB 51. This bill would ban mandatory arbitration agreements with respect to claims under the Labor Code and the Fair Employment and Housing Act while simultaneously disclaiming any intent to invalidate any agreement protected by the Federal Arbitration Act. Is this bill California’s latest clever—but predictably unsuccessful—effort to discriminate against
Continue Reading Zombie Apocalypse? Another (Unconstitutional?) California Assault on Arbitration

Seyfarth Synopsis: In vetoing the California Legislature’s attempt to criminalize arbitration agreements (AB 3080), Governor Brown displayed common sense and the legal learning provided by recent U.S. Supreme Court authority.

Haven’t high courts already upheld mandatory arbitration agreements?

Yes, they have. The California and U.S. Supreme Courts have repeatedly ruled that employers may require employees to enter valid arbitration agreements
Continue Reading Governor Brown Vetoes Legislative Attempt to Criminalize Mandatory Arbitration

Seyfarth Synopsis: Several bills of concern to California employers failed to receive the house of origin blessing and passage by the June 1 deadline, including this year’s attempts at PAGA reform, criminal history inquiries, and medical marijuana accommodations, while a boatload of others, most notably sexual harassment-related bills, sail on. The measures being passed to their opposite house for consideration
Continue Reading 2018 California Legislative Update: What Survived the House of Origin Deadline?