Federal court freezes California’s new anti-arbitration law AB 51

A federal court in California has frozen California’s 2019 anti-arbitration law, numbered AB 51 (“Assembly Bill”). AB 51, which would have taken effect January 1, 2020, would have barred arbitration agreements entered into — even through an “opt out” clause — as a condition of employment, at least as to California state law claims. The court’s ruling is a welcome clarification since AB 51 stood in obvious contradition to and in apparent violation of the United States Supreme Court’s many rulings under the Federal Arbitration Act. AB 51’s effective date is now frozen pending further litigation.

Source: Order Granting Temporary Restraining Order And Setting Expedited Hearing on Preliminary Injunction, Case No.  2:19-cv-02456-KJM-DB  (12/30/19).

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