Companies in California may tell job candidates that they must give up their right to sue them for most disputes. A bill likely headed to the governor's desk would let people say “no” without fear of losing their job offer.
When companies in California tell job candidates they have to give up their right to sue the company for most disputes, a bill headed to Gov. Gavin Newsom’s desk would let the candidates decline without fear of losing their job offer.
Federal law and some U.S. Supreme Court decisions do not let state governments ban these arbitration agreements. Supporters argue that the bill in California would not ban arbitration agreements, but make them optional: Employees could sign them, but they may not be punished for declining to. The bill would not affect existing arbitration agreements and would apply only to people hired after Jan. 1, 2020.
A coalition of business groups, including the California Chamber of Commerce, says the bill would effectively ban arbitration agreements. California already allows workers to sue companies on behalf of the state, seeking civil penalties for labor law violations. State Sen. Shannon Grove said that law has led to thousands of lawsuits, and limiting arbitration for labor disputes is “just another way that frivolous litigation can be filed in this state.”State Sen.
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