AB 465 Forced Waivers of Workers' Rights
SUMMARY
AB 465 will ensure that waivers of important employment rights
and procedures arising under California law are made voluntarily
and with the consent of the employee.
BACKGROUND
Forced waivers (including mandatory arbitration) ofworkplace
claims are anathema to our public justicesystem because they
eliminate important proceduralguarantees of fairness and due
process that arehallmarks of our judicial system.
In general, arbitration is an alternative method ofresolving
disputes in which two parties present theirindividual sides of a
complaint to an arbitrator orpanel of arbitrators.
However, forced waivers or arbitration agreementsare
fundamentally inferior. Employers often requirethem as a condition
of employment, which meansemployees will be fired or not hired if
they do notgive up their rights to resolve employment claims ina
court of law.
"[T]he economic pressure exerted by employers onall but the most
sought-after employees may beparticularly acute, for the
arbitration agreementstands between the employee and
necessaryemployment." Armendariz v. Foundation HealthPsychcare
Services, Inc., 24 Cal. 4th 83 (2000).
Employers craft the terms of the forcedarbitration provisions
and typically select thearbitration services providers for the
dispute.This creates a "repeat player advantage" thatfavors
employers utilizing the same provider toresolve their employment
disputes anddisadvantages individual employees who areone-time
participants in the process.
These clauses are often buried in the fine printof employment
applications, employeehandbooks and manuals. As a result, it is
nearlyimpossible for an employee to evaluate andmake an informed
choice about theappropriateness of a resolution mechanismprior to
the existence of an actual employmentdispute.
In 2010, 27 percent of U.S. employers reportedthat they required
arbitration of employmentdisputes covering over 36 million
employees.This percentage is likely even higher today.
Federal preemption under the FederalArbitration Act (FAA) is
strong in this field.However, as recently articulated by
theCalifornia Supreme Court, "state courts maycontinue to enforce
unconscionability rules thatdo not interfere with the fundamental
attributesof arbitration." Sonic-Calabasas, Inc. v. Moreno(Sonic
II) (2013).
For More Information, Please Contact Ben Ebbink (916) 319-2091
[email protected]
In order to be valid, even under federal law, suchagreements
must be voluntary and entered into withthe consent of the
employee.
"Arbitration is favored in this state as a voluntarymeans of
resolving disputes, and this voluntarinesshas been its bedrock
justification." Armendariz, 24Cal. 4th 83, 115.
WHAT THIS BILL WILL DO
AB 465 ensures these agreements are entered into with the
consent of the employee by requiring that such waivers be knowing,
voluntary and in writing. Such waivers shall also not expressly be
made as a condition of employment.
Specifically, this bill does the following:
It ensures that these agreements will not be required as a
condition of employment.
It prohibits an employer from discriminatingor retaliating
against an employee who refuses to sign such an agreement.
It ensures that such agreements are knowing, voluntary, and in
writing.
It provides that the party that seeks to enforce such an
agreement has the burden of proving that such agreements were
voluntary and not made as a condition of employment.
SUPPORT
California Labor Federation, AFL-CIO (sponsor)American Civil
Liberties Union of CAAmerican Federation of State, County and
Municipal EmployeesCA Conference Board of the Amalgamated Transit
UnionCA Conference of MachinistsCalifornia Employment Lawyers
AssociationCalifornia Immigrant Policy CenterCalifornia Nurses
AssociationCalifornia Professional FirefightersCalifornia Rural
Legal Assistance FoundationCalifornia School Employees
AssociationCalifornia State Firefighters' Association
California Teamsters Public Affairs CouncilCLEAN Carwash
CampaignCongress of California SeniorsConsumer Attorneys of
CaliforniaConsumer Federation of CaliforniaConsumers for Auto
Reliability and SafetyEngineers and Scientists of CA, IFPTE Local
20Equal Rights AdvocatesInternational Longshore and Warehouse
UnionKoreatown Immigrant Workers AllianceMaintenance Cooperation
Trust FundProfessional and Technical Engineers, IFPTE Local
21Service Employees International Union,
CaliforniaUNITE-HEREUtility Workers Union of America
STATUS
Assembly Labor 5-2Assembly Floor 45-30
For More Information, Please Contact Ben Ebbink (916) 319-2091
[email protected]
SUMMARYBACKGROUNDWHAT THIS BILL WILL DO
