Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to pass a bill that prohibits employers from requiring applicants or employees to enter into arbitration agreements.

Highlights:

• Prohibits a person from, as a condition of employment, continued employment, or the receipt of any employment-related benefit, requiring an employment applicant or any employee to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act, including the right to file and pursue a civil action or a complaint with any state agency or public prosecutor, law enforcement agency, court, or other governmental entity, for any alleged violation (Sec. 3).

• Prohibits an employer from threatening, retaliating, discriminating against, or terminating any applicant for employment or any employee because of the refusal to consent to the waiver of any right, forum, or procedure for a violation of the California Fair Employment and Housing Act, including the right to file and pursue a civil action or a complaint with, or otherwise notify any state agency, other public prosecutor, law enforcement agency, court, or other governmental entity of any alleged violation (Sec. 3).

• Specifies that an agreement requiring an employee to opt out of a waiver or take any affirmative action in order to preserve their rights is considered a condition of employment (Sec. 3).

• Specifies that this act applies to contracts for employment entered into, modified, or extended on or after January 1, 2020 (Sec. 3).

• Specifies that this act does not apply to post-dispute settlement agreements or negotiated severance agreements (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that prohibits employers from requiring applicants or employees to enter into arbitration agreements.

Highlights:

• Prohibits a person from, as a condition of employment, continued employment, or the receipt of any employment-related benefit, requiring an employment applicant or any employee to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act, including the right to file and pursue a civil action or a complaint with any state agency or public prosecutor, law enforcement agency, court, or other governmental entity, for any alleged violation (Sec. 3).

• Prohibits an employer from threatening, retaliating, discriminating against, or terminating any applicant for employment or any employee because of the refusal to consent to the waiver of any right, forum, or procedure for a violation of the California Fair Employment and Housing Act, including the right to file and pursue a civil action or a complaint with, or otherwise notify any state agency, other public prosecutor, law enforcement agency, court, or other governmental entity of any alleged violation (Sec. 3).

• Specifies that an agreement requiring an employee to opt out of a waiver or take any affirmative action in order to preserve their rights is considered a condition of employment (Sec. 3).

• Specifies that this act applies to contracts for employment entered into, modified, or extended on or after January 1, 2020 (Sec. 3).

• Specifies that this act does not apply to post-dispute settlement agreements or negotiated severance agreements (Sec. 3).

Full Bill Text