Ninth Circuit decides California employers can require employees enter mandatory arbitration agreements as condition of employment. Chamber of Commerce v Bonta, No. 20 15291, 9th Cir. February 15 2023, three judge panel found Assembly Bill 51, AB 51, preempted by federal law
US Ninth Circuit Court of Appeals cleared way for California employers to require arbitration agreements. Latest 2-1 decision in Chamber of Commerce v. Bonta upheld district court’s preliminary injunction blocking Assembly Bill 51.
Ninth Circuit panel revisited 2021 order and finally struck down California’s anti-mandatory employment arbitration law, Assembly Bill 51 AB 51. Opinion drafted by former dissenting judge Sandra Ikuta new majority declared AB 51 preempted by Federal Arbitration Act FAA.
Ninth Circuit affirmed district court barring enforcement of California’s Assembly Bill AB 51 with respect to arbitration agreements governed by Federal Arbitration Act FAA. AB 51 seeks to impose criminal and civil penalties on employers that require individuals to sign.
A divided Ninth Circuit panel in Chamber of Commerce v. Bonta upheld AB 51, a bill that prohibits employers from requiring employees to execute arbitration agreements as a condition of employment. The ruling reversed in part the ruling that AB 51 is preempted by the FAA.