Rulings on arbitration agreements continue to come thick and fast. Arbitration is a dispute resolution procedure where legal disputes are resolved by private arbitrators – typically retired judges – rather than in the public court system. Employers generally consider arbitration to be a more favorable forum for deciding disputes than litigating in court, though the costs to arbitrate are expensive.Read more
Tag Archives: arbitration agreements
Federal Law Now Limits Arbitration Agreements for Sexual Harassment/Sexual Assault Claims
A few months ago (10/13/21 Post), we discussed the status of arbitration agreements in California. We explained how, under California’s AB 51, employers are prohibited from requiring employees to sign, as a condition of employment, agreements requiring arbitration of claims under the Fair Employment and Housing Act (such as sexual harassment) or the California Labor Code (such as claims for wages). We explained that this legislation had been challenged as potentially preempted by the Federal Arbitration Act (“FAA”).Read more
9th Circuit Decision on Arbitration Agreements
9th Circuit Decision Makes It Harder for California Employers to Require Employees to Sign Arbitration Agreements as a Condition of Employment
Effective, January 1, 2020, the California legislature had passed a bill, AB 51, making it unlawful for employers to require newly hired employees to sign arbitration agreements as a condition of employment, meaning that it was not a voluntary choice.
Business groups promptly sued to invalidate AB 51. Last year, a federal district judge issued a preliminary injunction barring the state from enforcing the statute, finding that it was pre-empted by the Federal Arbitration Act.Read more