California Gov. Gavin Newsom on Oct. 10 signed into law Assembly
Bill 51. The new law, which goes into effect on Jan. 1, 2020,
outlaws forced arbitration of a significant majority of claims
employees and former employees can bring against their employer.
Employers are now forced to decide whether to do away with
mandatory arbitration provisions altogether, or keep them, in which
case they must be significantly restructured to comply with the new
law.
What is AB 51?
AB 51 adds new Section 432.6 to California's Labor Code. It
prohibits all employers from conditioning employment,
continued employment or the receipt of any employment benefit (like
a bonus or promotion) on a requirement that the applicant or
employee waive the right to bring legal claims for any
violation of the Labor Code or California's Fair Employment and
Housing Act (FEHA) in court or any other forum.
