Are Mandatory Arbitration Agreements Now Illegal in California?
Happy new year – it’s time for your business to comply with the new California and federal laws! You may know that many California employers have implemented mandatory arbitration agreements for their employees — and for very good reason. However, the California Legislature and Supreme Court recently and continuously have sought to make mandatory arbitration agreements illegal and unenforceable. Are you unsure of how that impacts your business? If so, then make plans to join our keynote speakers at a PIHRA 2020 Legal Update near you!
In this this keynote program at the PIHRA 2020 Legal Update, Michelle and Rich will cover the benefits and risks of mandatory arbitration agreements for all employees. Secondly, they will cover the impact of the recent attacks on those agreements by the California Legislature with the passage and Governor’s signing of AB 51 and SB 707. Thirdly, they’ll cover the decision of the California Supreme Court in Oto LLC v. Kho (September, 2019). In conclusion, you’ll learn what employers need to do currently to prepare and implement enforceable arbitration agreements.
Michelle and Rich will provide takeaways such as:
- Understand the benefits and risks of mandatory arbitration agreements in California.
- Understand the target of the most recent Legislative and judicial attacks on arbitration agreements and how to avoid subjecting your arbitration agreement to a successful attack.
- Learn the terms and procedures employers need to include and follow in order to ensure their arbitration agreement is enforceable.
Michelle and Rich’s PIHRA 2020 Legal Update keynote session “Are Mandatory Arbitration Agreements Now Illegal in California?” will be informative and entertaining. It’s a must-attend for California employers who need to know about these complex legislative topics. Above all, business owners and HR pros will gain the insight needed to navigate the trickiest new 2020 employment laws in California.
In order to uncover the full value Michelle and Rich will provide, Baskaran Ambalavanan interviewed our keynote speakers themselves. Read on to learn more about this tricky topic and what you can expect at the PIHRA 2020 Legal Update.
Keynote Speaker Spotlight: Michelle Rapoport and Rich Falcone, Littler
Special thanks to contributing writer and PIHRA Programs Chair, Baskaran Ambalavanan. Baskaran conducted this interview with PIHRA 2020 Legal Update keynote speakers Michelle Rapoport and Rich Falcone.
PIHRA: Effective January 1, 2020 California employers can no longer compel workers into signing an ‘Arbitration Agreement’ as a condition of employment. As a result, how can CA employers minimize the risk?
Michelle Rapoport and Rich Falcone: Well, the simple answer probably is to have “voluntary” agreements with a carve-out for uncovered claims. However, for those employers that are willing to be bold and creative, there are other alternatives.
Doesn’t AB5 pre-empt the FAA? Should employers change the language now or wait until it’s litigated and decided in the courts?
Michelle Rapoport and Rich Falcone: Actually, there’s a very compelling argument that the FAA preempts AB 51. This will depend on each individual employer’s understanding of the risks. However, its risk aversion tolerance will dictate whether it is willing to require employees to sign an arbitration agreement as a condition of employment, or whether it will wait to see what the courts ultimately decide about the preemptive effect of the FAA on AB 51.
Is there a secret sauce to avoid subjecting the arbitration agreements from legal attacks?
Michelle Rapoport and Rich Falcone: Yes, by simply complying with the new requirements of AB 51. Or, we’ve heard it said that $$ can work as a legal incentive to satisfy the requirements of the law.
What is the best way to ensure arbitration agreements are enforceable in the AB5 era?
Michelle Rapoport and Rich Falcone: AB 51, like any law, basically sets out a step-by-step process or checklist for the reader to follow. We’ll cover that step-by-step process during our presentation. Moreover, we’ll also describe how employers can evaluate how much they can “push the margins,” but remain compliant.
Why are you excited to present at the PIHRA 2020 Legal Update?
Michelle Rapoport and Rich Falcone: We are passionate about helping employers, all employers, to meet their obligations under California’s ever changing workplace laws. That passion is not simply motivated by a need to comply with all laws. As a result, we see employers, particularly the small and medium size businesses, as the backbone of California and our country. Furthermore, businesses create jobs and allow employees and their families to meet the basic necessities to survive and hopefully to prosper. Those business owners are today’s “Horatio Alger’s.” Above all, we want to help them succeed by providing a clear roadmap for complying with California’s very complex employment laws.