Western Electrical Contractors Association, Inc.

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Federal Court Enjoins California's New Arbitration Statute

Thursday, February 06, 2020

California's brand-new anti-arbitration statue likely is unconstitutional and cannot be enforced against agreements governed by the Federal Arbitration Act, given a ruling Friday by the United States District Court in Sacramento. In Chamber of Commerce v. Becerra, U.S. District Judge Kimberly Mueller issued a preliminary injunction that effectively permits employers to continue to enter into arbitration agreements covered by the FAA, apparently concluding that the FAA likely preempts newly enacted California Assembly Bill 51. More