News & Analysis as of

Contract Terms Preemption Mandatory Arbitration Clauses

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Rules FAA Does Not Preempt Arbitration Fee Deadline, Rejects Strict Penalties

On August 11, 2025, the Supreme Court of California ruled that the Federal Arbitration Act (FAA) does not preempt a state statute requiring employers to timely pay arbitration fees or forfeit the right to arbitration. The...more

Genova Burns LLC

Timing is Everything: NJ Appellate Division Compels Arbitration of Employee’s Sex Harassment Claims

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On October 26, 2022, the New Jersey Appellate Division in Rourke v. Herr Foods, Inc. once again confirmed that the Federal Arbitration Act (FAA) preempts the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD)...more

Seyfarth Shaw LLP

AB 51: Preliminary Injunction GRANTED

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Seyfarth Synopsis: Among other things, AB 51 makes it unlawful for employers to impose arbitration agreements on employees as a condition of employment, even if employees are permitted to opt out. AB 51 was quickly challenged...more

Littler

California Court Concludes that Anti-Arbitration Law is Likely Preempted

Littler on

On February 7, 2020, the U.S. District Court for the Eastern District of California issued an order supporting its injunction of Assembly Bill 51 (AB 51), an expansive anti-arbitration law enacted in October, which was...more

Seyfarth Shaw LLP

AB 51 Challenge: Preliminary Injunction Issued

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Seyfarth Synopsis: After granting a temporary restraining order days before AB 51 was to go into effect, the Eastern District of California granted a motion for a preliminary injunction on January 31, 2020. An order detailing...more

FordHarrison

A (Temporary) Reprieve for Mandatory Workplace Arbitration

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On December 30, 2019, a federal judge in the Eastern District of California entered an order temporarily halting the enforcement of AB 51, California’s new anti-mandatory arbitration law. AB 51, which was set to go into...more

Littler

Kentucky Supreme Court Rejects Conditioning Employment on Agreement to Arbitrate

Littler on

On September 27, 2018, the Kentucky Supreme Court in Northern Kentucky Area Development District v. Snyder held that the Federal Arbitration Act (FAA) does not preempt a Kentucky statute, KRS § 336.070(2), barring employers...more

Ward and Smith, P.A.

North Carolina Court of Appeals Declines to Enforce Arbitration Clause in Construction Contract

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An arbitration clause in a contract can affect the method parties will use to resolve disputes, what remedies are available to them, and, most importantly, where they will arbitrate and what state's laws will apply. A recent...more

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