California employers free to require employees enter into arbitration agreements as condition of employment. opinion from the Ninth Circuit last week that affirmed a trial court decision that had invalidated California Assembly Bill 51 AB 51 before it went into effect.
U.S. Court of Appeals for the Ninth Circuit struck down California Legislature attempt to limit employers’ ability to make arbitration of all disputes a condition of employment. Ninth Circuit ruled Assembly Bill 51 is preempted by Federal Arbitration Act FAA.
Mandatory arbitration agreements have been subject of considerable litigation leading to U.S. Chamber of Commerce v. Bonta opinion. Ninth Circuit Court ruled Federal Arbitration Act FAA preempts state rule, California employers can make employees sign arbitration agreements.
In Chamber of Commerce v. Bonta, the Ninth Circuit Court of Appeals overturned a decision in California Assembly Bill 51 AB 51.1 AB 51 prohibits employers from requiring applicants or employees as a condition of employment under the FEHA or the California Labor Code.