By Stephanie Perkins
•
21 Jan, 2020
Whether you’re a business owner or an employee, you’ve likely heard of California Assembly Bill 51. This bill, approved by the governor October 10, 2019 and deemed effective on January 1, 2020, was written to address the perceived abuse of arbitration agreements in employment contracts. Specifically, AB51 was intended to combat allegations of workplace harassment and assault from being dealt with in private arbitration as opposed to being brought forward into public court proceedings. The concern is this alternative forum, which is confidential and not a matter of public record, allows employers to sweep some of the “ugliness” under the rug, regardless of the outcome. However, several business groups, including the California Chamber of Commerce, have raised “serious questions” about this measure, both regarding its legality and its effectiveness. So, what does this bill say? And what are the issues being raised? How will they potentially impact you as a business owner or employee?