October 23, 2021

Volume XI, Number 296

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Court Grants Preliminary Injunction Against Enforcement of California’s Assembly Bill 51

The district court in Chamber of Commerce of the United States, et al. v. Becerra, et al., E.D. Cal. Case No. 2:19-cv-2456, granted the request for a preliminary injunction enjoining the State of California from enforcing Assembly Bill 51 (AB 51) with respect to arbitration agreements governed by the Federal Arbitration Act (FAA).

AB 51 generally prohibits conditioning employment or employment-related benefits on the signing of an arbitration agreement covering claims under the California Fair Employment and Housing Act or Labor Code. The U.S. Chamber of Commerce and other business organizations filed this lawsuit against the State of California seeking to have AB 51 declared preempted by the FAA. The preliminary injunction issued today will remain in place until the case is resolved on the merits.

In its minute order granting the preliminary injunction, the court indicated that it will issue a detailed, written order explaining its reasoning “in the coming days.”

Jackson Lewis attorneys will continue to monitor developments pertaining to AB 51. In the meantime, employers should contact a Jackson Lewis attorney if they would like to discuss the implications of the latest ruling or for assistance in drafting California-compliant employment arbitration agreements.

Jackson Lewis P.C. © 2021National Law Review, Volume X, Number 31
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About this Author

Scott P. Jang, Jackson Lewis, wrongful termination lawyer, unfair competition attorney
Associate

Scott P. Jang is an Associate in the San Francisco, California, office of Jackson Lewis P.C. He represents management in all areas of employment law litigation.

Mr. Jang’s practice includes defending management in matters involving claims for breach of contract, discrimination, harassment, retaliation, wrongful termination, and unfair competition. He represents clients in both class action and single plaintiff cases.

Mr. Jang is particularly well-versed in federal litigation. Prior to...

(415) 394-9400
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