On December 30, 2019, a federal judge in the Eastern District of
California entered an order temporarily halting the enforcement of
AB 51, California’s new anti-mandatory arbitration law. AB
51, which was set to go into effect on January 1, 2020, makes it
illegal for an employer to require an employee or applicant to
waive the right to pursue a civil action as a condition of
employment. While AB 51 does not directly reference arbitration,
the clear purpose of the law is to halt the use of mandatory
workplace arbitration agreements in California.
The Eastern District temporarily hit the brakes on the new law
going into effect just two days before the New Year, finding that
there are “serious questions” as to whether the new law
is preempted by federal law, which favors the use of arbitration.
The ruling, however, is not final and only represents a temporary
pause in the implementation of the law until the District Court can
fully address the issue. All eyes will be on
