CA Legislature Passes AB 465 Abolishing Arbitration Agreements

The California Senate and Assembly recently passed AB 465 which prevents employers from asking employees to sign a mandatory arbitration agreement as a condition of employment.  This new bill, which is now on Governor Brown’s desk, would add a new provision to the California Labor Code that would make it illegal to:

“Require another person to waive any legal right, penalty, remedy, forum, or procedure for a violation of any provision of [the 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.

If enacted, AB 465 would prohibit California employers from using mandatory arbitration agreements (and presumably class action waivers) as a condition of employment.  Employers would still be able to use these tools when not as a condition of employment, provided that the employee’s waiver was “knowing,” “voluntary,” and in