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California’s New Anti-Arbitration Law Temporarily Enjoined by Federal Court

From JDSupra, Caroline Powell Donelan reports that a federal judge issued an order prohibiting the enforcement of California’s AB 51 law that bans arbitration agreements in employment contracts. Caroline writes:

UPDATE: On December 29, 2019, the U.S. District Court for the Eastern District of California issued an order temporarily enjoining the enforcement of AB 51 pending resolution of plaintiffs’ motion for a preliminary injunction, highlighting the “likelihood of irreparable injury” to California employers, and noting plaintiffs had “raised serious questions regarding whether the challenged statute is preempted by the Federal Arbitration Act as construed by the United States Supreme Court.”

The court will hear plaintiffs’ motion for a preliminary injunction on January 10, 2020.

Stay tuned.

Source: California’s New Anti-Arbitration Law Temporarily Enjoined by Federal Court | Blank Rome LLP – JDSupra

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