Posted on March 2nd, 2020
Below is a complete description of this video.
What’s up fellow entrepreneurs? It’s John Fagerholm again.
Today I want to talk about AB-51.
This isn’t the video that I thought it was going to be. Initially when I was going to make this video, I was going to talk about how unduly oppressive AB-51 is and the erosion of the arbitration agreements in California, but instead I got a little gift for all of the employers out there.
Starting January 1 AB-51 was supposed to go into effect. AB-51 basically just says that arbitration agreements can’t be mandatory for employees anymore, which basically just opens the floodgates for employees to sue, especially under claims, and make it so expensive for employers to defend themselves that they’re required to settle whether they did anything wrong or not.
That’s my opinion of what the effect of AB-51 would be.
However, on December 30th a judge granted a temporary restraining order, so that law will not go into effect as of January 1, 2020.
There’s a hearing set for January 10th, 2020 so we’ll know more then if the restraining order will stay in place until the litigation happens.
But stay tuned, hopefully cooler heads or smarter people will prevail. Unfortunately, Gavin Newsome is really eroding even the last ability for employers to protect themselves.
But unfortunately, this AB-51 looks like it conflicts with federal law.
So hopefully things will go our way and we’ll still be allowed to freely contract with our employees so that if there’s a dispute, we can resolve it without it costing hundreds of thousands of dollars.
All right everybody, until next time, be productive.
