loader
Page is loading...
Arbitration

California's Law Barring Arbitration Won't Go Into Effect January 1


In October 2019, California Governor Gavin Newsom signed Assembly Bill 51, which aimed to effectively prohibit and criminalize arbitration of most employment-related claims, including claims for discrimination and claims under the California Labor Code. The law was set to take effect on January 1, 2020. 

However, as expected, the law is being challenged based on the argument that it is preempted by the Federal Arbitration Act. On December 30, 2019, opponents of the law received a win, at least for the time being. U.S. District Judge Kimberly Mueller granted a temporary restraining order filed by the U.S. Chamber of Commerce and other business groups. Judge Mueller will hear the business groups’ motion for a preliminary injunction on January 10, 2020. 

While it will likely take years before this litigation reaches a final resolution, Judge Mueller’s ruling provides hope for employers that the new law could be struck down. January 10 becomes an important date for California employers as the court weighs the parties’ contentions.


RELATED ARTICLES

California Offers Relief from State WARN Act Requirements

March 18, 2020 | Currents - Employment Law

Hey Siri: Is Time Spent by an Employee Waiting for a Security Check Compensable?

February 17, 2020 | Currents - Employment Law, Letter of the Law

That’s A Wrap: No Workplace Class Action For California Chipotle Workers

January 28, 2020 | Currents - Employment Law, Employment Discrimination

California Federal Court Leaves Retail Employees Holding the Bag

January 21, 2020 | Currents - Employment Law

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
RELATED TOPICS
California law
arbitration
Claims
California Labor Code
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.