Continuing with our Labor Lobbying theme, did you know that on August 24, 2015, the California Senate passed measure Assembly Bill 465 which prevents employers from requiring employees to sign an arbitration agreement as a condition of employment?

According to a recent article on Assembly Bill 465, the California Labor Federation has no problem with employment arbitrations so long as the choice of arbitrator and rules governing the arbitration are bilateral in nature. It only objects to those employment arbitration provisions that are not conspicuous, easy to read and understand, and those that arise where workers unknowingly submit to an arbitration process unilaterally designed by an employer binding the worker to a decision made by an arbitrator who is paid by the employer. Yet the California Senate sees a need to do away with employment arbitration altogether.

If AB-465 becomes law two effects appear certain: it will drive up litigation costs for employers and overburden the judicial system. We will monitor this closely.