As we reported previously [here], Assembly Bill 51, which would impose criminal penalties upon employers seeking to have their employees sign arbitration agreements, has been challenged in federal court. Today, Chief United States District Judge Kimberly J. Mueller enjoined the state from enforcing AB 51 indefinitely. So, employers in California may request that employees and applicants sign arbitration agreements without fear of doing time in the county jail! Chief Judge Mueller has only issued a brief minute order so far, but she indicated that “in the coming days the court will explain its reasoning in a detailed, written order.”
We will provide further updates as soon as they become available.