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Company Arbitration Agreement5/1/2021
It shows why health officials are nervous about holiday gatherings.Gavin Newsom following outrage over arbitration agreements that hid allegations of sexual harassment and assault against Hollywood producer Harvey Weinstein and other prominent figures.
Mueller issued a temporary restraining order halting enforcement of the law and set a hearing for Jan. The law does not apply to arbitration agreements entered into before Jan. However, it seeks to in effect prevent them from being a condition of employment by barring businesses from forcing applicants or employees to waive any right, forum or procedure to contest an alleged violation of the California Fair Employment and Housing Act. The California Chamber of Commerce had labeled the bill one of its job killers for the year, saying arbitration is an efficient, fair and more affordable method for companies to resolve disputes. The California chamber joined with the U.S. Chamber of Commerce, as well as the National Retail Federation and other groups, to file suit on Dec. The lawsuit argued the language of the statute violated federal law, as well as U.S. Supreme Court cases that have supported arbitration. This statute is just another in a long line where California is trying to essentially get around the Federal Arbitration Act and the many Supreme Court decisions that have enforced it, said Donald Falk, an attorney at Mayer Brown representing the chambers. They designed this statute thinking that could escape preemption. The court has more than once said you dont have to mention arbitration. In seeking the restraining order, the business groups said the law would subject employers to substantial civil enforcement and criminal penalties. Falk said this is the first state law he knows of that would criminalize the use of mandatory arbitration agreements. The offices of Gov. Newsom and California Atty. Gen. Xavier Becerra did not respond to requests for an immediate comment. Garcia-Brower, Becerra and two other state officials are named as defendants. Concerns over a conflict with federal law twice prompted former Gov. Jerry Brown to veto bills to curb the exploding practice of mandatory arbitration. However, in the last few years, allegations of sexual harassment and assaults by serial perpetrators, many of whom were protected by arbitration agreements, fueled anger in the MeToo era. At Google, 20,000 workers staged a global walkout demanding an end to forced arbitration. Labor advocates also say arbitration agreements present practical difficulties for employees who might struggle finding an attorney to represent them. In signing AB 51 and a second bill that gives victims of sexual harassment more time to file complaints, Newsom said in October that everyone should have the ability to feel that pride in what they do, but for too many workers, they arent provided the dignity, respect or safety they deserve. The state has also enacted another law to curb the use of arbitration agreements. Times staff writer Margot Roosevelt contributed to this report. He joined the paper in 2015 as an assistant business editor and has overseen finance, real estate and Washington business coverage.
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