NEWSFLASH: COURT HALTS CONTROVERSIAL ARBITRATION LAW

Business groups today are hailing a ruling in the case against California’s new law banning employers from requiring arbitration agreements as a condition of employment.

In the case, United States District Court Judge Kimberly J. Mueller ruled: “having carefully considered all relevant briefing, including supplemental briefing, the court GRANTS plaintiffs’ motion for a preliminary injunction in full. In the coming days the court will explain its reasoning in a detailed, written order.”

The California Chamber of Commerce hailed the ruling which halts the enforcement of and invalidating in full AB 51, a law that would have banned employers from, as a condition of employment, entering into arbitration agreements for claims brought under the Fair Employment and Housing Act and Labor code.
Our industry was part of a large coalition of employers led by the CalChamber that fought the bill in the Legislature, requested a veto which did not happen, and then challenged the law in court, arguing that AB 51 conflicted with federal law.

Of particular concern to employers were provisions of the law that placed the extraordinary burden of criminal penalties punishable by imprisonment and fines.
We are relieved at Judge Mueller’s decision granting plaintiffs’ motion for a preliminary injunction in full.  And we thank the California Chamber of Commerce for once again standing up for employers.

Legal documents in Chamber of Commerce of the United States of America et al. v. Becerra et al. can be found here.

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