California Ban on Mandatory Arbitration Clears Ninth Circuit Hurdle

The fight between business groups and California officials over mandatory arbitration clauses in employment contracts deepened Wednesday after a divided Ninth Circuit panel lifted a ban on a new pro-worker law.

A federal judge enjoined the state from enforcing Assembly Bill 51 last year, agreeing with the Chamber of Commerce and other employers that it was pre-empted by the Federal Arbitration Act. The decision was hailed by the coalition of business groups who accused California lawmakers of trying to weaken the common tool used to keep employment disputes out of the courts…

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