Governor Brown Vetoes Proposed Legislative Ban on Employment Arbitration Agreements

By October 4, 2018Articles

On September 30, 2018, California Governor Jerry Brown vetoed Assembly Bill 3080. AB 3080 sought to amend the California Fair Employment and Housing Act and California Labor Code making it unlawful for an employer to require an applicant, employee or independent contractor to agree in any contract entered into, modified or extended on or after January 1, 2019 to arbitrate claims arising under FEHA (i.e. discrimination and harassment violations) or the Labor Code. If the bill was enacted, if would have prohibited and penalized most employment arbitration agreement in California.

The governor vetoed a similar bill in 2015 (AB 465) that sought to ban employment arbitration agreements in the Golden State.

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