Seyfarth Synopsis: In vetoing the
California Legislature's attempt to criminalize arbitration
agreements (AB 3080), Governor Brown displayed common sense and the
legal learning provided by recent U.S. Supreme Court
authority.
Haven't high courts already upheld mandatory arbitration
agreements?
Yes, they have. The California and U.S. Supreme Courts have
repeatedly ruled that employers may require employees to enter
valid arbitration agreements (waiving the right to judge and jury
trial). The most recent vindication of arbitration agreements was
the U.S. Supreme Court's May 2018 decision in Epic
Systems, which upheld the enforceability of an arbitration
agreement that waived participation in class waivers, against an
argument that such a waiver violated employee rights to concerted
activity under the National Labor Relations Act.
