News & Analysis as of

Federal Arbitration Act Preemption Contract Terms

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
Husch Blackwell LLP

California Supreme Court Tackles Federal Preemption Issues in Employment and Consumer Arbitrations

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On August 11, 2025, the California Supreme Court issued a decision in the matter of Dana Hohenshelt v. The Superior Court of Los Angeles, ruling that the Federal Arbitration Act (“FAA”) does not preempt the California...more

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

Clark Hill PLC

California employers gain relief in arbitration fee deadline ruling

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In a highly anticipated decision, the California Supreme Court in Dana Hohenshelt v. Golden State Foods Corp. relieves some pressure for employers, holding that late payment of arbitration fees does not result in an automatic...more

Fenwick & West LLP

CA Supreme Court: Federal Arbitration Act Does Not Preempt State Law on Timely Arbitration Fee Payment

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The California Supreme Court recently held in Hohenshelt v. Superior Court that the Federal Arbitration Act (FAA) does not preempt a California law that penalizes businesses that have consumer and employee arbitration...more

Seyfarth Shaw LLP

The FAA Does Not Preempt the CAA’s Timely Pay Provisions

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The California Supreme Court ruled that the Federal Arbitration Act (FAA) does not preempt the California Arbitration Act (CAA) provisions that require the drafter of the arbitration agreement to pay all arbitration invoices...more

Womble Bond Dickinson

California Supreme Court Clarifies Arbitration Waiver Rule: Not as Draconian as It Seems

Womble Bond Dickinson on

The use of arbitration clauses in employment and consumer-related contracts is ubiquitous. California law requires companies facing employment and consumer claims in arbitration to pay arbitration fees and costs within 30...more

Paul Hastings LLP

California Supreme Court Issues Decision Addressing Whether the FAA Preempts California's Rule Governing Late Payment of...

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The California Supreme Court issued its decision in Hohenshelt v. Superior Court, addressing whether the Federal Arbitration Act (FAA) preempts California's rule governing late payment of arbitration fees, Cal. Code Civ....more

Hogan Lovells

New California statute raises questions for consumer arbitration provisions, but the spectre of potential federal preemption looms...

Hogan Lovells on

California Senate Bill No. 940, which became effective January 1, 2025, places significant restrictions on arbitration provisions affecting California consumers. Under the law, consumers may void contractual provisions that...more

Benesch

Ninth Circuit Provides Long-Awaited Guidance on Mass Arbitration Provisions

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In the long-awaited newest chapter of case law discussing the validity and enforceability of arbitration clauses and class action waivers, the Ninth Circuit on October 28, 2024, dealt a setback, though not a fatal blow, to...more

Genova Burns LLC

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

Genova Burns LLC on

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

Ervin Cohen & Jessup LLP

Judge Orders Emergency Halt of AB 51 Employment Arbitration Law

A federal judge issued a temporary restraining order on Monday, December 30, to halt enforcement of California’s Assembly Bill 51 (AB 51), which was scheduled to go into effect on January 1, 2020. AB 51 would have prevented...more

FordHarrison

A (Temporary) Reprieve for Mandatory Workplace Arbitration

FordHarrison on

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

Dorsey & Whitney LLP

Court Temporarily Halts California’s New Ban on Mandatory Employment Arbitration Agreements

Dorsey & Whitney LLP on

On October 10, 2019, California Governor Newsom signed a bill seeking to ban employers from requiring employees or applicants to sign arbitration agreements waiving their rights under the Labor Code or the state’s...more

Epstein Becker & Green

Not So Fast – Federal Court Issues TRO to Enjoin Enforcement of New California Arbitration Statute

Epstein Becker & Green on

We recently wrote about a new California law set to go into effect on January 1, 2020 that would outlaw mandatory arbitration agreements with employees....more

Littler

Enforcement of California’s Anti-Arbitration Law Put on Hold

Littler on

A federal court in California has prevented, at least for now, an expansive anti-arbitration law from taking effect on January 1, 2020.  Under Assembly Bill (AB) 51, enacted on October 10, 2019, employers cannot require...more

McNees Wallace & Nurick LLC

Will the Federal Arbitration Act Dismantle California’s Prohibition Against Employment Arbitration?

If your business operates in California, you need to be aware of AB 51, a law that will take effect January 1, 2020.  AB 51 precludes employers from requiring any applicant or employee, as a condition of employment, continued...more

Epstein Becker & Green

Court to Consider Whether California Ride Share Drivers Who Make Airport Runs Are Exempt from the Federal Arbitration Act

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On November 26, 2019, San Francisco Superior Court Judge Richard B. Ulmer ruled that the Federal Arbitration Act (“FAA”) might not apply to Uber drivers who are engaged in interstate commerce while driving passengers to or...more

Epstein Becker & Green

California Governor Signs Legislation Outlawing Mandatory Arbitration Agreements with Employees

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As employers with operations in California had feared, Governor Gavin Newsom has signed AB 51, which effectively outlaws mandatory arbitration agreements with employees – a new version of a bill that prior Governor Jerry...more

Seyfarth Shaw LLP

Zombie Apocalypse? Another (Unconstitutional?) California Assault on Arbitration

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Seyfarth Synopsis. On Thursday, September 5, 2019, the Legislature passed AB 51. This bill would ban mandatory arbitration agreements with respect to claims under the Labor Code and the Fair Employment and Housing Act while...more

McManis Faulkner

Is California’s McGill Rule Still Good Law?

McManis Faulkner on

On June 28, 2019, the Ninth Circuit held in three separate cases that the Federal Arbitration Act (FAA) does not preempt the California Supreme Court’s holding in McGill v. Citibank, N.A., 2 Cal.5th 945 (2017) — otherwise...more

Hudson Cook, LLP

Keep the Light On: U.S. Supreme Court Holds that Clear Consent is Required for Classwide Arbitration in Lamps Plus, Inc. v. Varela

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We have good news from the U.S. Supreme Court for creditors who use arbitration agreements. On April 24, 2019, in Lamps Plus v. Varela, the Supreme Court held in a 5-4 decision that courts may no longer infer from an...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

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