Assembly Bill 51 (AB 51) was set to take effect January 1, 2020. It prohibits requiring as a condition of employment arbitration of FEHA or Labor Code violations. (See KYL Alert dated December 18, 2019.) The U.S. Chamber of Commerce, California Chamber of Commerce, and other groups filed an action in the United States District Court for the Eastern District of California seeking to prevent enforcement of the ban. On December 30, 2019, Judge Kimberly J. Mueller granted the motion for temporary restraining order, which temporarily prevents the California Attorney General, California Labor Commissioner, Secretary of the California Workforce Development Agency, and the Director of the California DFEH from enforcing AB 51. In granting the motion, the court noted, “[P]laintiffs have raised serious questions regarding whether the challenged statute is preempted by the Federal Arbitration Act as construed by the United States Supreme Court.” The motion for preliminary injunction is set for January 10, 2020.
– Keesal, Young & Logan Employment Group
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