On October 10, 2019, California Governor Gavin Newsom signed
into law Assembly Bill 51 (AB 51) prohibiting mandatory workplace
arbitration agreements. AB 51 adds Section 12953 to the Government
Code and Section 432.6 to the Labor Code. AB 51 applies to
contracts entered into or modified after January 1, 2020.
Specifically, the new law prohibits employers from requiring
employees or applicants to waive a right, forum, or procedure for a
violation of the California Fair Employment and Housing Act (FEHA)
or the Labor Code as a condition of employment, continued
employment, or the receipt of any employment-related benefit.
Requiring employees to "opt out" of a waiver or take any
affirmative action to preserve their rights is deemed a condition
of employment, and thus these types of agreements are also
prohibited. AB 51 also prohibits employers from threatening,
retaliating or discriminating against, or terminating employees or
applicants because they refused to waive any
