EAC Update: Federal Court UNBLOCKS AB 51 - Restricting Mandatory Arbitration Agreements

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Employer Advisory Council of Orange County, Inc.

EAC Update


Federal Court UNBLOCKS AB 51,
Thus Restricting Mandatory Arbitration Agreements

provided by Scott & Whitehead


October 4, 2021


In 2019, the California Legislature enacted AB 51, which prohibits employers from requiring that employees sign an agreement that mandates arbitration of disputes.  AB 51 allows employers to request that employees sign an Arbitration Agreement, but does not allow companies to require it as a condition of employment.  

In 2020, the US and California Chambers of Commerce, along with a coalition of employer groups, filed a lawsuit to stop AB 51 from taking effect, which temporarily blocked the enforcement of AB 51.  

An appeals court has now unblocked AB 51, which means that it may be enforced.

While we await further court review that is expected to, again, temporarily block AB 51, all mandatory arbitration agreements entered into on or after January 1, 2020 should be reviewed by legal counsel, and possibly revised.

If you require that new hires (or other employees) sign an arbitration agreement, please contact your employment law attorney for review and consideration of your options.

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This bulletin is provided as a service to our clients and other friends to highlight current developments in the law. It is not intended to provide a legal opinion or specific legal advice. Should issues arise involving these, or other matters, please contact the EAC Office at (714) 794-4253.  


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The Employer Advisory Council of Orange County is a non-profit group, run by HR professionals and attorneys, as a low-cost approach to business and human resource solutions. Membership entitles you and your associates to low-cost HR workshops, timely updates on breaking legislation affecting your business practices and access to an HR Attorney Hotline. For more information on the EAC, visit our website at https://www.eac-oc.com

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