Temporary Restraining Order Issued to Enjoin Enforcement of New Arbitration Law
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On December 29, 2019, just days before AB 51 was to go into effect, a federal judge granted a temporary restraining order (“TRO”) to enjoin enforcement. The new law, which was set to go into effect on January 1, 2020, would outlaw mandatory arbitration agreements with employees and prohibit arbitration agreements that would require individuals to take affirmative action to be excluded from arbitration. Judge Kimberly Mueller concluded that it would be disruptive if the statute went into effect briefly and was later overturned. The TRO keeps the status quo in place while the court considers the request for preliminary injunction. More information
