California's Mandatory Arbitration Ban Blocked; Supreme Court Rules On Bag Check Policies

On February 6, 2020, U.S. District Court Judge Kimberly Mueller issued an order granting a preliminary injunction barring enforcement of AB-51, California’s ban on mandatory arbitration agreements in employment, for the foreseeable future.

Judge Mueller found that AB-51 places arbitration agreements on “unequal footing” and interferes with legally permissible arbitration agreements by placing civil and criminal penalties on employers. AB-51 therefore conflicts with the Federal Arbitration Act’s purpose to promote arbitration agreements. That conflict means that AB-51 is likely pre-empted by federal law and justified the Court issuing a preliminary injunction against enforcement.

Read the full client alert below.