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Victory For California Employers with Arbitration Agreements

On February 15, 2023, a federal appeals court for the Ninth Circuit ruled that the Federal Arbitration Act preempts California State Assembly Bill 51, a bill that limited the use of employment arbitration agreements. With this decision, California employers can require employees to sign arbitration agreements as a condition of employment.

There are still rules regarding specific language that must be in the agreement and how it can be utilized so employers should check with their legal counsel.

To read the full decision, please click here.

For questions about arbitration agreements or other matters, reach out to our experienced Labor & Employment Department at 408.286.5800 or e-mail