Hunton Employment & Labor Perspectives

California’s law against arbitration remains in doubt after Eastern District Judge Kimberly Mueller extended the TRO issued on December 31, prohibiting the state of California from enforcing the law against agreements covered by the Federal Arbitration Act.  That law, known as AB 51, seeks to prohibit companies in California from requiring arbitration agreements as a condition of employment.

In a minute order issued shortly after oral argument on the motion for preliminary injunction, the court extended the temporary restraining order through January 31, but clarified that the TRO only applies to agreements covered by the Federal Arbitration Act, ruling, “[p]ending the court's issuance of an order on the preliminary injunction motion, the Temporary Restraining Order the court issued on December 30, 2019 . . . shall remain in effect until January 31, 2020, while MODIFIED to clarify that defendants are temporarily enjoined from enforcing AB 51 to the extent it applies to arbitration agreements covered by the Federal Arbitration Act.”

The Court also gave the parties an opportunity to submit supplemental briefing to address jurisdictional issues, including standing, and whether any invalid provisions of the law can be severed, while leaving the remainder of the law intact.

You can read more about AB 51 here.