Governor Vetoes Anti-Arbitration Bill on Final Night

Sunday, September 30 closed out the final day for Governor Jerry Brown to sign or veto legislation passed during this year’s legislative session. While the signing period ended with a flurry of bills signed such as net neutrality and several bills meant to strengthen protections for sexual harassment, one stood out. AB 3080 (Gonzalez Fletcher), the last remaining bill that was labeled a Job Killer by the California Chamber of Commerce, was vetoed. CTA opposed AB 3080 with a coalition of 48 other business groups from around California. 

 

AB 3080 would have banned the inclusion of arbitration agreements as part of a condition of employment, even though they have proven to provide a beneficial and cost effective forum to resolve disputes for both employees and employers.  

 

In the Governor’s veto message, he said, "since this bill plainly violates federal law, I cannot sign this measure."

 

Governor Brown vetoed a similar bill in 2015, stating that he would like to have direction from the U.S. Supreme Court. In 2017, the Supreme Court heard Kindred Nursing Centers Ltd. Partnership v. Clark, and in a near unanimous decision rejected the assertion that the Federal Arbitration Act has no application to the formation of contracts, preempting AB 3080.

 

For any additional information on AB 3080 or any other legislation you can email Matt Roman at mroman@caltrux.org.