Ninth Circuit Partially Upholds AB-51’s Attack on Mandatory Arbitration Written by Stephen Rossi and Teresa Greider California’s “AB-51” is a controversial law that limits employers’ ability to enter into arbitration agreements with employees, and provides possible civil and criminal penalties for employers that make arbitration agreements a mandatory condition of employment. In February 2020, a District Court in California issued a preliminary injunction barring the … Continue reading Mandatory Arbitration Is On the Ropes Again In California
Written by Alfredo Ortega Last week, the U.S. District Court for the Eastern District of California granted a request for a preliminary injunction to prohibit the State of California from enforcing Assembly Bill 51 (AB 51) as to arbitration agreements governed by the Federal Arbitration Act (FAA). AB 51 generally bars conditioning employment or employment-related benefits on the signing of an arbitration agreement covering claims … Continue reading California’s Mandatory Arbitration Agreement Ban Stopped In Its Tracks
Written by Jeremy Mittman
Recently, we informed our readers about a new law making it more difficult to classify independent contractors as such. Unfortunately, that was just the tip of the iceberg. A number of additional new employment-related bills recently signed into law by Governor Gavin Newsom will have a negative impact on California employers. Unless specifically noted, these laws go into effect on January 1, 2020. MSK recommends that any employer with California employees should consult with their employment counsel to address questions regarding changes to current policies/procedures in light of these new laws. Continue reading “More Bad News For California Employers as Governor Signs Bills Into Law”
Written by Jeremy Mittman
California employers received mostly good news this past month on the arbitration front, with a trio of pro-employer arbitration-related rulings. The California Supreme Court’s recent ruling invalidating an employer’s arbitration agreement (discussed below) is a notable exception.
California Supreme Court Invalidates Employer’s Arbitration Agreement As Unconscionable.
In OTO LLC v. Ken Kho, the California Supreme Court ruled that an Oakland Toyota dealership’s arbitration agreement with a former employee was unenforceable and was so unfair and one-sided that it was procedurally and substantively unconscionable. “Arbitration is premised on the parties’ mutual consent, not coercion, and the manner of the agreement’s imposition here raises serious concerns on that score,” the majority opinion said. Continue reading “California Arbitration Roundup: Employers Are 3-1 For Favorable Arbitration Rulings”