California’s Workplace Arbitration Law Faces Legal Challenge (1)

The U.S. Chamber of Commerce and other business groups challenged California’s ban on forcing workers to sign arbitration agreements, arguing it’s preempted by federal law.

The U.S. Supreme Court has repeatedly ruled that state laws singling out arbitration are trumped by the Federal Arbitration Act, the coalition of business groups said in their lawsuit filed Dec. 6 in the U.S. District Court for the Eastern District of California.

California’s restriction on workplace arbitration, known as Assembly Bill 51, prohibits employers from requiring that job applicants or workers sign arbitration pacts as a condition of employment. The law also forbids employers ...