As seen in the LA Daily Journal: Court Order Explains Preliminary Enjoinment of Enforcement of Assembly Bill 51
Judge Kimberly Mueller issued a detailed written ruling earlier this month in which she stressed that the plaintiffs are "likely to succeed on the merits" because the FAA preempts state law that purports to contradict the FAA's express policy that agreements to arbitrate are valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."
In a rare victory for California employers, a federal district court preliminarily enjoined enforcement of Assembly Bill 51, the new California law designed to prohibit mandatory arbitration agreements in employment. As anticipated, the district court ruled that AB 51 was preempted by the Federal Arbitration Act. Chamber of Commerce of U.S., et al. v. Xavier Becerra, et al., 2:19-CV-02456-KJM-DB, Dkt. No. 47 (E.D. Cal. Feb. 7, 2020). While the fight over AB 51's enforceability is far from over, it appears likely that California's latest attempt to curb mandatory arbitration agreements will once again fail.
Vedder Thinking | Articles As seen in the LA Daily Journal: Court Order Explains Preliminary Enjoinment of Enforcement of Assembly Bill 51
Publication
February 27, 2020
Judge Kimberly Mueller issued a detailed written ruling earlier this month in which she stressed that the plaintiffs are "likely to succeed on the merits" because the FAA preempts state law that purports to contradict the FAA's express policy that agreements to arbitrate are valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."
In a rare victory for California employers, a federal district court preliminarily enjoined enforcement of Assembly Bill 51, the new California law designed to prohibit mandatory arbitration agreements in employment. As anticipated, the district court ruled that AB 51 was preempted by the Federal Arbitration Act. Chamber of Commerce of U.S., et al. v. Xavier Becerra, et al., 2:19-CV-02456-KJM-DB, Dkt. No. 47 (E.D. Cal. Feb. 7, 2020). While the fight over AB 51's enforceability is far from over, it appears likely that California's latest attempt to curb mandatory arbitration agreements will once again fail.
