What You Need to Know about AB-51 Mandatory Arbitration Agreements

Brett Sutton and Jared Hague talk about the recent developments that have happened regarding the AB-51 mandatory arbitration agreement law. Brett first dives in by giving a simple overview of what an arbitration agreement is, how it works, and some of its pros and cons. After, Jared steps in to explain the upcoming legal changes happening within the law and what employers need to know going forward.

 

Highlights:

• What do employers need to know about mandatory arbitration agreements?
• The laws can change on any of this information provided today. Before taking action, seek legal counsel for your unique situation.
• A quick overview of workplace arbitration agreements.
• All things being equal, employers want to be in front of a trained arbitrator vs. a jury.
• A huge benefit for California employers is that they can include a class-action waiver in their arbitration agreements.
• If you’re in an industry that’s not popular with the public, like chemicals or oil, then it’s even more important to favor an arbitration agreement.
• What are some of the disadvantages of an arbitration agreement?
• There’s been pushback by certain advocacy groups saying that an arbitration agreement is not fair.
• Jared steps in and explains what have been some of the latest developments happening in this space.
• Let’s take a quick look at why the Federal Arbitration Act was created in the first place.
• What’s the biggest takeaway that you need to know about AB-51?
• You can’t incentivize your employee in any way nor fire him/her if they don’t want to sign an arbitration agreement.
• What happens to you if you violate AB-51?
• When should you ask someone to sign an arbitration agreement?
• What are some of the best ways to protect yourself from a potential lawsuit? Brett and Jared weigh in with their thoughts.

 

Resources:

Suttonhague.com

Calnevalaw.com