On February 15, 2023, a federal appeals court blocked a California law that prohibited employers from requiring their workers to resolve legal disputes in private arbitration.

A three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco in a 2-1 decision held that the law cannot be enforced because it conflicts with federal arbitration law. This ruling hands an important victory to business groups and employers across the state.

The 9th Circuit panel in 2021 upheld the law 2-1, but later agreed to reconsider the decision. One of the three judges was persuaded to reverse his prior ruling in this revised order, which revived a ruling by a lower court against the law. The case is U.S. Chamber of Commerce v. Bonta, 9th Cir., No. 20-15291, 2/15/2023.

In light of this important and helpful Court of Appeals decision, employers across the state should consider revising their arbitration agreement to take out any language that permits the employee to decide whether or not they wish to enter into it.

JMBM’s Labor and Employment attorney s counsel businesses and management on workplace issues, helping to establish policies that address problems and reduce job-related lawsuits. We act quickly to resolve claims and aggressively defend our clients in all federal and state courts, before the Department of Labor, the NLRB, and other federal, state and local agencies, as well as in private arbitration forums. We represent employers in collective bargaining negotiations and arbitration.

See how JMBM’s Global Hospitality Group® can help you. Click here for the latest on labor and employment guidance.

About the JMBM Global Hospitality Group®

The hospitality attorneys in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP comprise the premier hospitality practice in a full-service law firm, and the most experienced legal and advisory team in the industry. Our team of seasoned hotel lawyers has helped clients with more than 4,600 hospitality properties located around the globe valued at more than $123 billion, and have worked on more than 2,700 management and franchise agreements. Our experience provides one of the most extensive virtual data bases of market terms for deals and financings. The hospitality lawyers of our team are not just great hotel lawyers—we are also hospitality consultants and business advisors, dealmakers and facilitators of the flow of capital. We help our clients find the right operator, joint venture partner or capital provider. We know who to call and how to reach them.

Jim Butler
+1 310 201 3526
JMBM

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