California Bill to Ban Most Employment Arbitration Agreements Moves One Step Closer to Becoming Law

In its continuing, apparent quest to undermine federal law, the California legislature is moving to make it unlawful for employers to require applicants or employees to agree to resolve employment-related disputes by way of arbitration. AB 3080 would add provisions to the California Fair Employment and Housing Act (FEHA) and to the California Labor Code making it unlawful for an employer to require an applicant, employee, or independent contractor to agree to waive any forum (i.e. court) for the resolution of a dispute arising under FEHA (discrimination, harassment, and retaliation) or the Labor Code (wages/wage statements/meal and rest breaks/working conditions). The bill further specifies that an arbitration agreement is unlawful even if applicants or employees are permitted to opt out of the agreement. In other words, even where an employee is permitted to opt out of the arbitration agreement, the agreement still will be deemed to have been forced on the employee as a condition of employment, and therefore, will be considered unlawful.