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California Governor Vetoes Bill Outlawing Mandatory Arbitration Agreements in the Workforce

Wednesday, October 21, 2015

(North American Meat Institute)

California Governor Jerry Brown last week vetoed Assembly Bill 465, which would have outlawed the use of mandatory arbitration agreements as a condition of employment, making California the only state in the country to have this particular prohibition. The bill would have forbidden retaliation against workers who refuse to give up their right to sue in court. Brown said courts have protected workers and addressed unfairness by requiring arbitrators to be neutral in workforce disputes and cited court mandates for adequate legal discovery, no limitation on damages or remedies, a written decision that permits some judicial review and limitations on the costs of arbitration. Brown also stated bans on mandatory arbitration agreements are far-reaching and have been struck down in other states for violating the Federal Arbitration Act.

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