New Year, New Rules ( California Employment Law)

AB51 will go into effect this Wednesday, January 1, 2020. What does this mean for you as a business owner?

Well, simply stated, AB51 prohibits employers from requiring arbitration of nearly all employment related claims from either new employees or employees those employee agreements are modified or extended.

AB51 also prohibits and employer from threatening, retaliating, or discriminating against any job applicant or employee who refuses to agree to an arbitration agreement. If an employee successfully challenges you fo unlawfully mandating an arbitration agreement or successfully proves that you threatened, retaliated or discriminated against them for refusing to sign an arbitration agreement, you will also be liable for their attorney's fees.

*There is a one year statute of limitation.*

Exceptions

• Self Regulatory organizations as defined by the Securities Exchange Act of 1934;

• Arbitration clauses included in post-dispute settlement agreements or negotiated severance agreements;

What does this mean for you?

Consider reviewing your arbitration agreements to determine how AB51 may impact both your existing agreements and anticipated agreements in the new year.

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