Arbitration Agreements Back for Employers in California
03-07-2023
In October 2019, California Governor Gavin Newsom signed a new labor code provision into law regarding the use of arbitration agreements in employment. A federal district court soon granted a preliminary injunction, placing a hold on the law. California appealed to the Ninth Circuit Court of Appeals. Initially, the Ninth Circuit held the Federal Arbitration Act did not completely preempt AB 51 and lifted the temporary injunction. However, the Ninth Circuit reviewed its decision and reinstated the preliminary injunction.