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New California Law On Arbitration Agreements

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Kalley Aman is an attorney practicing in the Litigation and Labor & Employment practice groups at Buchalter, PC. in Los Angeles, California. Kalley Aman maintains a close watch on legislative developments and has a strong interest in the state employment laws that take effect in 2020. Among these is AB51, which prohibits employers from requiring employees to arbitrate disputes under the California Fair Employment & Housing Act or the California Labor Code as a condition of employment, continued employment, or the receipt of employment related benefits.

AB51 provides, in part:

A person shall not, as a condition of employment, continued employment, or the receipt of any employment-related benefit, require any applicant for employment or any employee to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code) or this code, including the right to file and pursue a civil action or a complaint with, or otherwise notify, any state agency, other public prosecutor, law enforcement agency, or any court or other governmental entity of any alleged violation.

An employer shall not threaten, retaliate or discriminate against, or terminate any applicant for employment or any employee because of the refusal to consent to the waiver of any right, forum, or procedure for a violation of the California Fair Employment and Housing Act or this code, including the right to file and pursue a civil action or a complaint with, or otherwise notify, any state agency, other public prosecutor, law enforcement agency, or any court or other governmental entity of any alleged violation

AB51 does not apply to postdispute settlement agreements or negotiated severance agreements.

AB51 applies to contracts for employment entered into, modified, or extended on or after January 1, 2020.

If you need guidance on how to comply with AB51, contact Kalley Aman at Buchalter, A.P.C. (213) 891-0700.