David S. Faustman was featured in the Daily Journal article, "If Enforceable, State Bill Could Sharply Cut Workplace Arbitration Agreements." Full text can be found in the July 30, 2015, issue, but a synopsis is noted below.
Assembly Bill 465 has made its way through the House, a Senate committee and is currently awaiting a Senate floor vote on an August 17 in Sacramento. The legislation would prohibit an employer from forcing a prospective employee to sign a waiver regarding their right to sue as a condition of their employment; and depending on who you talk to, this legislation could have an impact in several different ways.
Fox Rothschild's David S. Faustman, an employment defense lawyer, referenced a 2011 U.S. Supreme Court case, AT&T Mobility LLC v. Conception, which enforces the fact that arbitration agreement are binding like any other contract.
"Every legislative or regulatory attempt by the state to limit or ban arbitration has been shut down," Faustman said. "The first court with a pulse that deals with this bill will find it preempted."
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