Important news hit last week that AB-51 has been placed on hold until the federal court can make a decision. This bill was signed into effect by Governor Gavin Newsom on October 10, 2019, and scheduled to go into effect in January 2020. AB-51 would ban employers from requiring job applicants and employees to arbitrate claims under the California Labor Code and the Fair Employment and Housing Act. The bill is intended to protect employees by ensuring they retain the right to sue employers in court.
Just shortly after this bill went into effect in January 2020, we received news a federal district court placed a last-minute temporary restraining order to block California from enforcing AB-51. The preliminary injunction currently in place ensures employers do not need to fear criminal prosecution for the use of mandatory arbitration. This preliminary injunction, which seeks to overturn AB51, will remain in effect until the case of the lawsuit is determined, which could be at least a year.
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