On Friday, December 6, 2019, a coalition of national and state trade associations filed suit in California federal court seeking to strike down the state’s recently enacted “anti-arbitration” law, A.B. 51.1 A.B. 51 effectively prohibits the formation and use of pre-dispute arbitration agreements in the employment setting. The California state legislature passed the bill earlier this year, and Governor Gavin Newsom (D) signed it into law on October 10, 2019. The law is scheduled to go into effect on January 1, 2020, but the business groups will be asking the court to issue a preliminary injunction preventing the law from taking effect.
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