Bill To Governor Jerry Brown, Attempting To Curtain Mandatory Employment Arbitration/Class Waiver Situations, Has Fee Shifting.
AB465 has drawn a lot of press. It is a California bill designed to end mandatory workplace arbitration; it has passed the Legislature and awaits Governor Jerry Brown’s decision. If he vetoes by October 11, 2015, it does not become law; otherwise, it will become law if he approves or does nothing by that date.
The bill would prohibit requiring persons, as a condition of employment, to agree to the waiver of any legal right, penalty, forum, or procedure for any employment law violations. (Pragmatically, this is aimed at mandatory employment arbitration/class waiver provisions in employment contracts or handbooks.) However, of interest to our readers, we would indicate that proposed Labor Code section 925(g) allows the trial judge to award discretionary, reasonable attorney’s fees (“may award”) to a plaintiff enforcing rights under AB465.
AB465 only applies to an agreement entered into, including a contract modified, renewed, or extended, on or after January 1, 2016.
For a spirited discussion of the pros and cons, see Margot Roosevelt’s article “Day In Court? Gov. Jerry Brown Faces A Decision On Mandatory Workplace Arbitration” in the Business section of the September 20, 2015 edition of The Orange County Register.
We will try to keep you posted on whether this bill becomes law.