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Court Grants Preliminary Injunction on Enforcement of California Ban on Employment Arbitration Agreements

The U.S. District Court for the Eastern District of California has granted a request for a preliminary injunction to prohibit the State of California from enforcing Assembly Bill 51 (AB 51) as to arbitration agreements governed by the Federal Arbitration Act (FAA). Chamber of Commerce of the United States, et al. v. Becerra, et al., No. 2:19-cv-2456 (E.D. Cal. Jan. 31, 2020). The court indicated that it will issue a detailed, written order explaining its reasoning “in the coming days.”

AB 51 generally bars conditioning employment or employment-related benefits on the signing of an arbitration agreement covering claims under the California Fair Employment and Housing Act or the Labor Code.

The U.S. Chamber of Commerce and other business organizations filed this lawsuit seeking to have AB 51 declared preempted by the FAA. (For background, see our articles, Court Hears Challenges to California Bar on Mandatory Arbitration Agreements in EmploymentCalifornia Bar on Mandatory Arbitration Agreements in Employment Temporarily EnjoinedCalifornia Bar on Mandatory Arbitration Agreements in Employment Challenged, Injunction Sought; and New California Law Attacks Mandatory Arbitration Again … But Is It More Bark Than Bite?)

The preliminary injunction will remain in place until the case is resolved on the merits.

Jackson Lewis P.C. © 2020

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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...

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