AB 51 Ban on Mandatory Arbitration in Employment is Back (Kind Of, And Probably Not For Long)

Ninth Circuit Court Lifts Restraining Order on California Implementing a Ban on Mandatory Arbitration as not Being preempted by the Federal Arbitration Act

The Ninth Circuit Court panel surprisingly rules that portions of California Assembly Bill 51 are not preempted by the Federal Arbitration Act, setting up a possible ban on mandatory employment agreements in California. However, the ruling is not retroactive to agreements already in place and extremely likely to be appealed and further stayed until the Supreme Court of the United States weighs in. As such, employers need not make immediate wholesale or radical changes to current practices.

Want to see how this might affect your workplace? Click here to learn more about the ruling and what employers should do in response. 

If you have any legal questions or concerns, please call Dawn Ross, Arif Virji, Samantha Pungprakearti, or Justin Hein at Carle, Mackie, Power & Ross LLP at (707) 526-4200