Here is the latest in a series of blogs about AB 51, the California bill that threatened mandatory arbitration. Thankfully, the District Court granted the preliminary injunction in full (not just temporarily), and stopped AB 51 from being enforced. That means that as long as the arbitration agreement is governed by the FAA (Federal Arbitration Act), it can still be mandatory. The Court promised a more detailed ruling with its analysis, which we will post when available.
Bottomline, California employers can still have mandatory arbitration agreements, or arbitration agreements with an opt-out provision. AB 51 is not enforceable. This case may be headed to the 9th Circuit and eventually the US Supreme Court, but until then, mandatory arbitration is lawful (as long as not unconscionable per existing California law).