Beginning Jan. 1, employees in California won’t be forced to use arbitration as their only avenue to resolve discrimination or sexual harassment claims, civil rights issues other employment disputes in the workplace. That’s because in September, Gov. Gavin Newsom signed a bill into law that bans mandatory arbitration clauses in employment agreements, enabling workers to sue their employer.
“This law includes all claims under the state’s labor codes and California Fair Employment & Housing Act,” says Peter Hering at Rutan & Tucker. “A similar statute was passed in New York a few years back that attempted to ban mandatory arbitration agreements in the context of sexual-harassment cases. But the Southern District of New York held it was preempted by federal law [the Federal Arbitration Act, or FAA].”
Human Resource Executive: Employ workers in California? Review your arbitration agreement
