On February 7, 2020, the U.S. District Court for the Eastern
District of California issued an order supporting its injunction of Assembly
Bill 51 (AB 51), an expansive anti-arbitration law enacted in
October, which was scheduled to take effect on January 1,
2020.1 In its order, the court expressly noted
that it was likely that opponents of the bill would succeed on
their argument that AB 51 was invalid insofar as it is preempted by
federal law.
Under AB 51, employers in the Golden State would be unable to
require applicants and employees from waiving any right, forum, or
procedure established by the California Fair Employment and Housing
Act and the Labor Code, effectively banning mandatory arbitration
of employment disputes. Due to its particular placement in
the Labor Code, violation of the law would constitute a
misdemeanor.
