In 2019, the California legislature passed, and Gov. Gavin Newsom signed, Assembly Bill 51 (AB 51), which by its terms prohibits employers from—and, in fact, criminalizes—requiring job applicants or employees to agree to arbitration claims under the California Fair Employment and Housing Act (FEHA) or the California Labor Code as a condition of employment.

By ratcheting up the stakes and raising the specter of criminal liability, the state of California clearly intended to have a chilling effect on employers.