California Employment News: The State of Mandatory Arbitration Agreements in California Employment
Podcast: California Employment News - The State of Mandatory Arbitration Agreements in California Employment
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Arbitration Clauses in Employee Contracts and Beyond
There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more
Once again, the California legislature's attempt to kneecap arbitration agreements in the employment arena has been swept aside by a federal court. As of February 15, 2023, California employers may continue to require...more
As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a...more
Mandatory Arbitration Agreements for Employees Are “On” Again...for Now. Once upon a time, before a certain virus captured all of our attention, the California legislature enacted Assembly Bill 51 (AB 51), which prohibits...more
On Feb. 15, 2023, the Ninth U.S. Circuit Court of Appeals affirmed a district court’s ruling that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which made it a criminal offense for an...more
On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more
A federal appeals court just paved the way for California employers to continue utilizing mandatory arbitration agreements with employees and job applicants. You may be familiar with the litigation roller coaster of...more
On October 26, 2022, the New Jersey Appellate Division in Rourke v. Herr Foods, Inc. once again confirmed that the Federal Arbitration Act (FAA) preempts the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD)...more
On May 25, 2022, the Essex County Superior Court in Sellino v. Galiher, et al., ESX-L-8519-21 (N.J. Super. Ct. May 25, 2022) denied the defendants’ motion to compel arbitration in a sexual harassment case, determining that...more
Businesses and attorneys alike have kept a close eye on the developments surrounding the challenge to California Assembly Bill 51 (now codified as Labor Code section 432.6). Most recently, in a 2-1 decision, the 9th Circuit...more
Last month, a split Ninth Circuit panel ruled that certain portions of California’s Assembly Bill 51 (2019) were not preempted by the Federal Arbitration Act (FAA) and held that employers are prohibited from requiring...more
The battle concerning California’s Assembly Bill (AB) No. 51 - the law seeking effectively to ban mandatory employment arbitration in California - continues to rage. On October 20, 2021, the U.S. Chamber of Commerce, the...more
- The Ninth Circuit rules that portions of Assembly Bill 51 are not preempted by the Federal Arbitration Act (“FAA”) and lifts a lower court’s injunction that barred the law from taking effect. - The court did rule that...more
The New Jersey Supreme Court issued a combined opinion in two cases arising from arbitration agreements in employment contracts. The plaintiffs in the respective cases claimed they fell within section 1 of the Federal...more
A New York State Trial Court judge recently ruled that an agreement between a company and an employee to arbitrate sexual harassment claims was unenforceable due to 2018 amendments to New York State’s Human Rights Law, which...more
- On July 13, 2020, the New York Supreme Court in Andowah Newton v. LVMH Moët Hennessy Louis Vuitton Inc., Sup. Ct., N.Y. County, July 13, 2020, J. Nock, Index No. 154178/2019, slip op at p. 16, allowed the plaintiff employee...more
The Chamber of Commerce and employer organizations convinced a federal court judge in California to halt enforcement of Assembly Bill 51, which was set to take effect January 1, 2020, and invalidate all agreements requiring...more
A controversial California law that would have prevented employers from requiring arbitration agreements as a condition of employment has been enjoined from taking effect by a federal district judge. Assembly Bill 51 (AB 51)...more
A federal district court found that the new California law barring mandatory employment arbitration agreements is preempted by the Federal Arbitration Act (FAA). The court granted the challengers’ motion for preliminary...more
On February 7, 2020, United States District Court Judge Kimberly J. Mueller issued a decision explaining her prior order blocking enforcement of California's new law restricting arbitration agreements, AB 51. ...more
On January 31, 2020, Chief United States District Judge Kimberly J. Mueller enjoined California from enforcing AB 51. This new legislation prohibits employers from requiring their employees to sign arbitration agreements....more
Seyfarth Synopsis: Among other things, 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. AB 51 was quickly challenged...more
On February 7, 2020, the U.S. District Court for the Eastern District of California issued an order supporting its injunction of Assembly Bill 51 (AB 51), an expansive anti-arbitration law enacted in October, which was...more
Not surprisingly, OTO, LLC, the employer in OTO, L.L.C. v. Kho, 8 Cal. 5th 111 (2019), on January 13, 2020, petitioned the U.S. Supreme Court to review a 2019 California Supreme Court decision not to enforce an arbitration...more
On January 31, 2020, Judge Kimberly Mueller issued a preliminary injunction "in full" preventing the State of California from enforcing AB 51, the state's new law effectively banning mandatory employee arbitration...more