California Legislature Bans Mandatory Employment Arbitration Agreements
Earlier this month, the California Legislature took a strong stance against mandatory, pre-dispute arbitration agreements in the employment context, which are widely used by leading companies in Silicon Valley.
The new legislation will be challenged in both state and federal court, with the possibility that the statute will be overturned. Regardless of whether these challenges are successful, however, the new legislation speaks to a broader trend of scrutinizing the use of broad-based, mandatory arbitration of employment disputes.
An excellent summary of the new legislation can be found here (thank you Paul Hastings):