Governor Signs Bill Prohibiting Mandatory Arbitration Agreements For Employees

Client Alert

October 2019

By: Jeffrey A. Dinkin

Jeff Dinkin, chair of Stradling's Employment Law practice group, and associate Sean Piers want to inform you on a recent bill that has been signed. On October 10, 2019, Governor Newsom signed AB-51 which prohibits employers from requiring their employees to enter into binding arbitration agreements. It also creates a private right of action against anyone who requires or coerces an employee to enter an arbitration agreement as a condition of their employment or retaliates against employees who refuses to do so. This new law applies to arbitration agreements entered into, modified or extended on or after January 1, 2020.

Read the full client alert below for more information. 

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