California Governor Jerry Brown “dashed the hopes of plaintiffs lawyers and organized labor” by vetoing legislation that would have outlawed mandatory arbitration agreements and class-action waivers in employment contracts in the state.
Brown said Assembly Bill 465 was too “far-reaching.”
Brown noted that the U.S. Supreme Court is currently considering two cases involving preemption of California arbitration policies under the Federal Arbitration Act: Direct TV v. Imburgia and MHN Government Services v. Zaborowski.
“Before enacting a law as broad as this,” Brown said, “and one that will surely result in years of costly litigation and legal uncertainty, I would prefer to see the outcome of those cases.”
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