Employment Law Alert: Federal Court Grants TRO Blocking AB 51 (California Mandatory Employee Arbitration Ban)

In our November 8, 2019 Employment Law Alert, we discussed a new California law banning mandatory employee arbitration agreements (AB 51) effective January 1, 2020, and anticipated legal challenges to the new law.  On December 29, 2019, a federal court granted a temporary restraining order to block enforcement of AB 51 pending further legal review.  Chamber of Commerce of the United States v. Becerra, 2019 U.S. Dist. LEXIS 222561 (E.D. Cal. Dec. 29, 2019).  The case is scheduled for a further hearing (on a motion for a preliminary injunction against AB 51) on January 10, 2020.

Employers utilizing employee arbitration agreements should continue to monitor further legal developments regarding the status of AB 51, and consult with legal counsel for advice on how to handle employee arbitration agreements pending a final decision in the case.