AB465 just passed the Senate Labor and Industrial Relations Committee on a 4-1 vote and is on to the Senate Judiciary Committee next. This bill precludes mandatory employment arbitration agreements, which have already been authorized by the California and US Supreme Courts.
Although this regulation, if passed, could ultimately be overturned by the courts, it will take many years to work it’s way through the system. Meanwhile, employers and employees will have to pay for lengthy lawyer and court proceedings with no resolution in sight. The only people making money on this are the lawyers of California and they are, as usual, silent on the issue.
If you have or are thinking of adding a arbitration agreement to your employment package, you may want to reconsider and instead impose good payroll, time recording and proper training as a low cost alternative to this expensive process. If you have the correct tools in place, the chances of trouble diminishes considerably. Your loss prevention specialist from HR Mobile Services, Inc. can help you stay in compliance.
IN ALL CASES, if you are a full service customer of ours, and OSHA shows up on your property, ask them to wait off the property for one hour and call our office immediately so we can get out there and represent you.