News & Analysis as of

Federal Arbitration Act Preemption Mandatory Arbitration Clauses

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

BakerHostetler on

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

Venable LLP

Ninth Circuit Puts Mandatory Employment Arbitration Agreements Back on the Menu

Venable LLP on

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

McDermott Will & Emery

Ninth Circuit Holds That California AB 51 Is Preempted by the FAA

McDermott Will & Emery on

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

Greenberg Glusker LLP

One Step Forward For Arbitration Agreements, Two Steps Back For Non-Disparagement Provisions

Greenberg Glusker LLP on

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

McGuireWoods LLP

Ninth Circuit Holds Federal Arbitration Act Preempts California Law Prohibiting “Forced Arbitration”

McGuireWoods LLP on

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ninth Circuit Blocks California’s Ban on Mandatory Arbitration in Employment

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

Fisher Phillips

Federal Appeals Court Blocks California’s Ban on Mandatory Arbitration Agreements: 7 Key Takeaways for Employers

Fisher Phillips on

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

Genova Burns LLC

Timing is Everything: NJ Appellate Division Compels Arbitration of Employee’s Sex Harassment Claims

Genova Burns LLC on

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

Bressler, Amery & Ross, P.C.

Court Determines Federal Arbitration Act No Longer Preempts New Jersey Law Preventing Mandatory Arbitration in Sexual Harassment...

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

Ervin Cohen & Jessup LLP

Mandatory Arbitration Agreements in California: Down, But Possibly Not Out

Ervin Cohen & Jessup LLP on

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

Manatt, Phelps & Phillips, LLP

Chamber of Commerce Asks Full 9th Circuit to Rehear Case Banning Mandatory Employment Arbitration

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

U.S. Chamber of Commerce Asks Ninth Circuit to Reconsider Ruling Upholding California’s Mandatory Employment Arbitration Ban

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

Fisher Phillips

The Arbitration Whipsaw Continues – Court Reinstates Portions of California Prohibition of Mandatory Arbitration Agreements

Fisher Phillips on

- 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

Carlton Fields

NJ Supreme Court Finds State Arbitration Law Applies to FAA-Exempt Workers

Carlton Fields on

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

Mintz - Employment Viewpoints

New York State Judge Allows Sexual Harassment Claim to Proceed in Court, Invalidating Arbitration Agreement

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

Akin Gump Strauss Hauer & Feld LLP

The New York Supreme Court Enforces New York’s State Law Prohibiting Mandatory Arbitration of Employment Discrimination Claims and...

- 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

Manatt, Phelps & Phillips, LLP

California Court Keeps AB 51 on Hold

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

Akerman LLP - HR Defense

California’s Arbitration Agreement Ban on Hold

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

MoFo Employment Law Commentary (ELC)

Federal Court Preliminarily Enjoins the Attorney General from Enforcing AB 51, the New California Law Barring Mandatory Employment...

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

Davis Wright Tremaine LLP

Preliminary Injunction Blocks California Ban on Arbitration Agreements Covered by Federal Arbitration Act

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

Proskauer - California Employment Law

Federal Court Strikes Down California’s “Request Arbitration, Go to Jail” Law

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 Shaw LLP

AB 51: Preliminary Injunction GRANTED

Seyfarth Shaw LLP on

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

Littler

California Court Concludes that Anti-Arbitration Law is Likely Preempted

Littler on

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

Jackson Lewis P.C.

U.S. Supreme Court Asked To Review California’s Perceived Hostility To Arbitration Agreements

Jackson Lewis P.C. on

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

Payne & Fears

Federal Judge Issues Preliminary Injunction Blocking State's Enforcement of New Law Banning Mandatory Employee Arbitration...

Payne & Fears on

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

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JD Supra Privacy Policy

Updated: Dec 28, 2021:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

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Privacy Officer
JD Supra, LLC
150 Harbor Drive, #2760
Sausalito, CA 94965

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Privacy Officer
JD Supra, LLC
150 Harbor Drive, #2760
Sausalito, CA 94965

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Contacting JD Supra

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Updates to This Policy

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Contacting JD Supra

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