In addition to the fundamental principles of contract law discussed above, employers in California must also ensure that their arbitration agreements meet the requirements of the California Supreme Court in Armendariz. In this case, the Court entered into agreements to reconcile discrimination on the basis of labour relations and other legal rights must meet the following requirements in order to be enforceable under California law: (1) impose neutral arbitrators; (2) allow more than just a minimal discovery; (3) require a written decision from the arbitrator; (4) to authorize any kind of appeal to the courts; and (5) do not require staff to either inappropriate fees or arbitration fees or fees as a condition for access to arbitration. On January 31, 2020, the U.S. Chamber of Commerce District Court, et al. Becerra, et al., A.D. Cal. Case 2:19-cv-2456, filed the application for a referral order that was issued by the State of California (state) of the Order of the Assembly of Control Bill 51 (AB 51) against arbitration agreements by the Federal Arbitration… On January 31, 2020, a U.S. District Court provisionally passed the assembly Bill 51 (AB 51) against arbitration agreements under the Federal Arbitration Act (FAA). As it came into force, AB 51 employers would prohibit conditioning employment (including retention) or employment-related benefits to a person who signs a mandatory arbitration agreement for disputes that… However, all arbitration agreements already in effect between workers and employers are still valid under this new law.5 Recently, in July 2003, the court issued its decision in Circuit City Stores, Inc.
v. Mantor. In that case, the court found that Mantor, unlike the Najd and Ahmed plaintiffs, did not have the opportunity to opt out of the arbitration program. Mr. Mantor presented evidence that he was threatened with approval of the agreement and, on that basis, the Court found the agreement procedurally unacceptable. Since the disputed agreement was virtually the same as the one assessed by the Court in Ingle (which the Court found materially unacceptable), both elements of scruples were found and the Court quashed the agreement in its entirety. It remains to be seen whether the California AB-51 will ultimately be maintained, but for now there are still binding arbitration agreements that will be covered by the FAA in California to see one more day.