California Law Limiting Arbitration Resurrected by Ninth Circuit (1)

Workers in California won’t be forced into arbitration as a condition of employment thanks to a federal appeals court ruling that revived a novel state law, threatening a common business practice and carving out a unique way to circumvent a federal law that controls these contracts.

A split U.S. Court of Appeals for the Ninth Circuit panel ruled Wednesday that the Federal Arbitration Act doesn’t preempt those portions of Assembly Bill 51 that prohibit employers from retaliating against workers who decline to sign arbitration pacts as a condition of employment.

The federal law also doesn’t nix sections that require workers ...