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Ninth Circuit Withdraws its Decision on California’s “AB 51” Arbitration Law

MSK Client Alert
August 25, 2022

California Assembly Bill 51 (“AB 51”), codified as California Labor Code section 432.6 and California Government Code section 12953, was signed by Governor Newsom in 2019 and went into effect January 1, 2020.  AB 51 prohibits California employers from requiring employees to agree to mandatory arbitration as a condition of employment. In early 2020, multiple business associations, including the California Chamber of Commerce and the U.S. Chamber of Commerce, filed suit to challenge AB 51 as preempted by the Federal Arbitration Act (“FAA”). In February 2020, a California federal district court agreed, and enjoined enforcement of AB 51.

In September 2021...

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