The district court in Chamber of Commerce of the United States, et al. v. Becerra, et al., E.D. Cal. Case No. 2:19-cv-2456, granted the request for a preliminary injunction enjoining the State of California from enforcing Assembly Bill 51 (AB 51) with respect to arbitration agreements governed by the Federal Arbitration Act (FAA).
AB 51 generally prohibits conditioning employment or employment-related benefits on the signing of an arbitration agreement covering claims under the California Fair Employment and Housing Act or Labor Code. The U.S. Chamber of Commerce and other business organizations filed this lawsuit against the State of California seeking to have AB 51 declared preempted by the FAA. The preliminary injunction issued today will remain in place until the case is resolved on the merits.
In its minute order granting the preliminary injunction, the court indicated that it will issue a detailed, written order explaining its reasoning “in the coming days.”