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California - AB 51 Arbitration Prohibition Temporarily Stopped

On December 30, 2019, U.S. District Judge Kimberly J. Mueller granted a temporary restraining order,) which briefly stops California Assembly Bill 51 (A.B. 51) from taking effect on January 1, 2020. A.B. 51 prohibits employers from requiring, as a condition of employment, employees’ waiver of any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act or California Labor Code § 432.6. According to the order, the court found that there are serious questions regarding the merits of the law and whether the challenged statute is pre-empted by the Federal Arbitration Act.

On January 10, 2020, the court will hear the motion for a preliminary injunction and, if granted, may invalidate A.B. 51 going forward.

See the order