For many years, state and federal courts in California have opposed arbitration and have manufactured frameworks under which they become unenforceable despite the clear directives of the Federal Arbitration Act (FAA) and countless Supreme Court cases. While a string of Supreme Court cases over the past decade gave employers some respite, the Ninth Circuit has now issued a split decision in which it has devised yet another means of trying to evade the FAA’s mandate.
Just two years ago, California enacted AB 51 to discourage the use of mandatory arbitration agreements in the employment setting, establishing both civil and even criminal penalties for doing so. These provisions were in obvious violation of the FAA, and a California district court swiftly enjoined them for that reason. We previously wrote about the district court’s lengthy and solid opinion and its grant of the injunction here.