News & Analysis as of

Preemption Employment Contract

CDF Labor Law LLP

Importance of FAA in California Employment Arbitration Agreements Underscored

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Employers may be able to breathe a sigh of relief as a California Court of Appeal concluded that the Federal Arbitration Act (“FAA”) preempts state law that allowed employees to wriggle out of arbitration and win thousands of...more

Parker Poe Adams & Bernstein LLP

What Physicians and Their Practices Need to Know About FTC's Noncompete Ban

On April 23, the Federal Trade Commission (FTC) approved a long-anticipated final rule that will effectively ban the use of noncompete clauses by employers, with a few limited exceptions....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

FTC Announces Open Commission Meeting to Vote to Issue Final Rule Banning Noncompetes

On April 16, 2024, more than fifteen months after issuing a notice of proposed rulemaking that would ban noncompetes and nearly a year after the comment period closed, the Federal Trade Commission (FTC) announced it was...more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

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There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

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As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

Seyfarth Shaw LLP

Did the NLRB Preempt Non-Compete Litigation?

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Over last week, two seemingly unconnected events happened that impact restrictive covenant and labor law. First, the National Labor Relations Board’s General Counsel, Jennifer Abruzzo, issued a memorandum opining that certain...more

Manatt, Phelps & Phillips, LLP

FAA Preempts AB 51, Ninth Circuit Holds

The battle over arbitration in California continues, with a divided panel of the Ninth U.S. Circuit Court of Appeals ruling that the Federal Arbitration Act (FAA) preempts the state’s Assembly Bill 51, a law that prohibits...more

Venable LLP

Ninth Circuit Puts Mandatory Employment Arbitration Agreements Back on the Menu

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Once again, the California legislature's attempt to kneecap arbitration agreements in the employment arena has been swept aside by a federal court. As of February 15, 2023, California employers may continue to require...more

Faegre Drinker Biddle & Reath LLP

Ninth Circuit Rules California Employers Can Require Arbitration Agreements

Some good news for California employers. Recently, the U.S. Court of Appeals for the Ninth Circuit ruled that California employers can require employees and applicants to sign arbitration agreements as a condition of...more

Polsinelli

Mandatory Arbitration Agreements Remain Valid in California

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California employers received welcome reassurance last week that they are free to require employees enter into arbitration agreements as a condition of employment. This is the result of an opinion from the Ninth Circuit last...more

Stradling Yocca Carlson & Rauth

All For Naught: California Employers Can Continue To Require Workers to Sign Arbitration Agreements

After more than three years of legal challenges, California’s Assembly Bill 51 was completely struck down as preempted by the Federal Arbitration Act in a Ninth Circuit ruling on February 15, 2023. California employers can...more

McDermott Will & Emery

Ninth Circuit Holds That California AB 51 Is Preempted by the FAA

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As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a...more

Payne & Fears

Employers May Require Arbitration Agreements as Condition of Employment, Federal Appeals Court Holds

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After more than three years of litigation, the Ninth Circuit has held that AB 51, California’s attempt to ban mandatory employment arbitration agreements, is unenforceable....more

McGuireWoods LLP

Ninth Circuit Holds Federal Arbitration Act Preempts California Law Prohibiting “Forced Arbitration”

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On Feb. 15, 2023, the Ninth U.S. Circuit Court of Appeals affirmed a district court’s ruling that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which made it a criminal offense for an...more

Littler

Ninth Circuit Allows Enforcement of Employment Arbitration Agreements in California

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In a significant win for California employers, the Ninth Circuit Court of Appeals, in Chamber of Commerce v. Bonta,1 affirmed a district court injunction striking down California Assembly Bill 51 (“AB 51”) as preempted by the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ninth Circuit Blocks California’s Ban on Mandatory Arbitration in Employment

On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more

Fisher Phillips

Federal Appeals Court Blocks California’s Ban on Mandatory Arbitration Agreements: 7 Key Takeaways for Employers

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A federal appeals court just paved the way for California employers to continue utilizing mandatory arbitration agreements with employees and job applicants. You may be familiar with the litigation roller coaster of...more

Royer Cooper Cohen Braunfeld LLC

FTC Proposes Aggressive Rule That Would Decimate Employment Non-Competes

The federal government has proposed a rule to ban non-compete agreements between nearly all employers and all workers. The Federal Trade Commission (FTC) believes this rule will increase wages by almost $300 billion annually...more

Genova Burns LLC

Timing is Everything: NJ Appellate Division Compels Arbitration of Employee’s Sex Harassment Claims

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On October 26, 2022, the New Jersey Appellate Division in Rourke v. Herr Foods, Inc. once again confirmed that the Federal Arbitration Act (FAA) preempts the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD)...more

CDF Labor Law LLP

CA Court of Appeal Upholds Arbitration Agreement Under FAA Preemption

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Evenskaas v. California Transit Inc. reversed a Los Angeles Superior Court judge’s denial of an employer’s motion to compel arbitration of a former employee’s wage and hour class action. The trial court had concluded that the...more

DirectEmployers Association

OFCCP Week In Review: June 2022 #2

The DE OFCCP Week in Review (WIR) is a simple, fast and direct summary of relevant happenings in the OFCCP regulatory environment, authored by experts John C. Fox, Candee J. Chambers and Cynthia L. Hackerott. In today’s...more

Akin Gump Strauss Hauer & Feld LLP

As Supreme Court Hears Argument in Viking River Cruises, PAGA’s Most Consequential Case Faces an Uncertain Future

Today, the U.S. Supreme Court will hear oral argument in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573. Wage and hour practitioners, particularly in California, have watched the case with keen interest because it...more

Hogan Lovells

NJ appellate court affirms: FAA preempts NJLAD prohibition on arbitration agreements

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In 2019, New Jersey amended its Law Against Discrimination (NJLAD) to include a provision purporting to ban agreements requiring employees to arbitrate claims arising under the NJLAD (Amendment). On February 15, 2022, a New...more

Ervin Cohen & Jessup LLP

Mandatory Arbitration Agreements in California: Down, But Possibly Not Out

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Businesses and attorneys alike have kept a close eye on the developments surrounding the challenge to California Assembly Bill 51 (now codified as Labor Code section 432.6). Most recently, in a 2-1 decision, the 9th Circuit...more

Manatt, Phelps & Phillips, LLP

U.S. Supreme Court to Review California’s Ban on PAGA Waivers

In a major turn of events for California employers, on December 15, 2021, the U.S. Supreme Court granted certiorari in a case that challenges California’s ban on arbitration agreements that limit employees’ right to sue their...more

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