After 4 lengthy years of litigation, AB 51, meant to ban necessary arbitration agreements, has been completely enjoined. California firms might rejoice in a uncommon win permitting enforceable arbitration agreements to be a situation of employment, as long as the Federal Arbitration Act (“FAA”) governs the settlement. Most arbitration agreements comprise this provision, however employers ought to examine to substantiate their agreements comprise an FAA provision earlier than making them necessary. The most important hurdle to necessary arbitration agreements is now out of the way in which. The courts nonetheless will analyze arbitration agreements for procedural and substantive conscionability for plaintiffs unwilling to file in arbitration. Seek the advice of with counsel to make sure your arbitration settlement will stand up to judicial scrutiny.

See some further, sensible ideas for imposing arbitration agreements, and ensuring the claims keep in arbitration, right here and right here.