Last month we reported the California Senate had passed Assembly Bill 465 that was meant to prevent employers from requiring employees to sign an arbitration agreement as a condition of employment. Governor Brown vetoed the measure.
In his veto statement the Governor cited adequate court scrutiny and the far reaching implications of a total ban requiring an agreement to arbitrate as a condition of employment. In addition, he noted cases based on the Federal Arbitration Act pending in Federal Court that could determine such a law is unconstitutional. Therefore, he also believed the law to be premature.
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