CALIFORNIA: California State Senate (CSS) passed a measure that would block most employers from forcing workers to agree to arbitrate labor disputes instead of filing claims with state agencies or courts. The senate approved the measure, AB-465 which is sponsored by the California Labor Federation (LF) and has drawn fierce opposition from the California Chamber of Commerce.
Following AB-465’s passage, the senate ordered the bill to the assembly. The bill would add a new provision to the Labor Code to prohibit any person from.California Labor Code as a condition of employment, including the right to file and pursue a civil action or complaint with, or otherwise notify, the Labor Commissioner, state agency, other public prosecutor, law enforcement agency, or any court or other governmental entity.”
In sum, AB-465 would prohibit companies from requiring employees to waive their legal rights to provisions of the state labor code as a condition of employment. If enacted, the bill would make such waivers, including class action waivers unconscionable and unenforceable if made a condition of employment. The bill also would make it unlawful to threaten, retaliate or discriminate against any person who refuses to sign such a waiver.
The California Chamber of Commerce has called AB-465 a “job killer,” stating that it would drive up litigation costs for all California employers and put pressure on an already-overburdened judicial system with more class actions and other suits especially involving wage and hour issues and would result in a substantial change in the law.
