In a significant decision impacting employers’ ability to require new and current employees to agree to arbitrate their disputes, the Ninth Circuit Court of Appeals held by a 2-1 decision in Chamber of Commerce v. Bonta that AB51, enacted in California in 2019, which prohibited mandatory arbitration agreements, violated the Federal Arbitration Act.  Based upon its ruling, which reversed an earlier decision issued by the Ninth Circuit, employers can now require employees to enter arbitration agreements as a condition of employment.  California employers must now wait to see if the state of California will appeal to the full Ninth Circuit or the US Supreme Court. 

California employers are advised to consult with employment counsel before implementing a mandatory arbitration agreement. Should you have any questions about the   Ninth Circuit’s decision or regarding implementing a mandatory arbitration agreement, contact our employment attorney Scott Liner at [email protected] at Chase Law Group or call 310-545-7700.