In 2020, California has new rules, regulations, and court rulings that have changed the employment law landscape. In this four-part series, we bring you key new laws for 2020. Our first update is on arbitration in the workplace.
Arbitration Agreements
California now prohibits employers from requiring employees and applicants to arbitrate claims under the Fair Employment and Housing Act (FEHA) and the Labor Code. These laws cover discrimination, harassment, retaliation, and wage and hour. The new law also prohibits class action waivers and arbitration programs that require employees to “opt out” if they do not want to be part of an arbitration program. There are exceptions to the new bar, including for settlement agreements and negotiated severance agreements.
This change took effect on January 1, 2020, and arbitration agreements signed before that will be subject to the prohibition.
[This article does not constitute legal advice.]
Other Articles in this Series:
2020 California Employment Law Update #1: Arbitration in the Workplace
2020 California Employment Law Update #2: Compensation
2020 California Employment Law Update #3: Fair Employment
2020 California Employment Law Update #4: Time off
Jeanine DeBacker of McPharlin Sprinkles & Thomas LLP represents employers throughout Northern California when employees sue for harassment, wrongful termination, discrimination and not getting paid correctly. She also advises clients on how to avoid getting sued in the first place. Jeanine conducts trainings for employees on harassment prevention and maintaining a respectful workplace. Finally, Jeanine is a neutral workplace investigator.
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