The Dublin Chamber of Commerce has announced its opposition to AB 51 (Gonzalez; D-San Diego), which would prevent arbitration of labor and employment claims as a condition of employment, stating the bill will subject businesses to significantly increased costs as a result of more litigation and expense of delayed dispute resolutions. In addition, AB 51 adds a new private right of action and exposes employers to criminal liability for any violation.

“This Legislation will be costly to California business and ultimately unconstitutional,” said Dublin Chamber CEO Inge Houston. “Both the California Court of Appeal and the U.S. Supreme Court have held that bans such as this are preempted by federal law.”

AB 51 is pending and will be heard Aug. 12 in the Senate Appropriations Committee. The next stop will be the Senate Floor, and ultimately Governor Newsom’s desk. Virtually identical bills were vetoed by Governor Jerry Brown twice in the last four years. The Dublin Chamber urges its members to contact their elected officials and urge a NO vote on AB 51.