Important Decision for California Employers Impacting Mandatory Arbitration Agreements

There’s a big development happening in California employment law that many employers have been waiting on. For a little while, California employers were in a bit of a limbo to understand whether mandatory arbitration agreements were enforceable or not. In this episode, Brett explains what an arbitration agreement is, what the AB51 is, and what does this new court ruling mean for employers with employees in the state of California. 

 

Highlights:

• What’s happening with legislation in California? 

• Let’s give context and talk about what AB51 is. 

• What is an arbitration agreement? 

• A properly drafted arbitration agreement makes it difficult for people to file a class action lawsuit against their employer. 

• The arbitration process is very expensive, however there is a trade off. 

• So what was the main reason for drafting AB51? 

• Is AB51 enforceable? 

• For a little bit, the courts were in limbo with this assembly bill.

• As of February, 2023, it means this bill is not enforceable. But what does this mean for employers? 

• What is Brett’s recommendation as of right now for California employers? 

 

Resources:

Suttonhague.com

Calnevalaw.com