AB 51

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On Feb. 15, 2023, the Ninth Circuit in Chamber of Commerce v. Bonta issued its ruling on the ongoing question of Assembly Bill (AB) 51’s enforceability in relation to arbitration agreements, where the court once again affirmed that the Federal Arbitration Act (FAA) preempts AB 51.

Background on AB 51

California has attempted to legislate…

In the span of five weeks, a coalition of plaintiffs representing national and state business organizations and employers, including the U.S. Chamber of Commerce and the California Chamber of Commerce, have gone two for two in challenging AB 51 to restore the previous status quo permitting the use of arbitration agreements with their employees. The…