Annual California Legislative Roundup -

Now that the dust has settled on the California 2016 legislative session, it is once again time to round up and review the new laws impacting California employers. Although there were not any major surprises, there were enough changes affecting existing law that employers—and employees—ought to set aside the time to get up to speed. This Commentary will guide you through the new hoops and potential hurdles California employers will have to navigate in the coming year. Among the more significant bills are changes to the state’s minimum wage law and restrictions on forum and choice of law provisions in employment contracts. All newly enacted laws are effective January 1, 2017, unless otherwise noted.

SB 1241 – Forum (un)selection and choice of law provisions -

Forum selection and choice of law clauses have long been staples of California employment contracts. New legislation chips away at an employer’s right to enforce such provisions. The law grants employees who reside and work primarily in California with the unilateral right to void any provision that would require an employee to adjudicate claims arising in California in any outside forum or that would “[d]eprive [such an] employee of the substantive protection of California law with respect to a controversy arising in California.” Employees who sue to successfully void such provisions may recover reasonable attorneys’ fees under Labor Code § 925(e).