Society for Human Resources Management: Court Will Rehear Case on California Arbitration Agreements

The 9th US Circuit Court of Appeals will rehear US Chamber of Commerce v. Bonta, a case that concerns arbitration agreements in California. The court’s original decision upheld AB 51, a California law that prohibits employers from requiring workers to sign arbitration agreements. “We’re in a state of limbo,” said Adam Karr, a partner at O’Melveny & Myers LLP. “We’re cautiously optimistic that this is good news from the employer’s perspective. The original opinion from an employer’s perspective was not particularly favorable, and Judge Ikuta stated the view very clearly as to why this [state] law was pre-empted by the Federal Arbitration Act (FAA).”

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