On February 15, 2023, the Ninth Circuit held that AB 51 is preempted by the Federal Arbitration Act ("FAA") and consequently California employers are free to require employees to sign arbitration agreements as a condition of employment. See Chamber of Com. of the United States of Am. v. Bonta, No. 20-15291, 2023 WL 2013326 (9th Cir. Feb. 15, 2023). AB 51 made it a criminal offense for an employer to do so, whether for applicants or existing employees.
According to the Ninth Circuit, the California legislature purposely crafted AB 51 to circumvent the preemptive power of the...
