• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar

Cabada Hameed LLP

Employment and Business Litigation Lawyers based in Southern California

  • Attorneys
    • Francisco Cabada
    • Sayema Hameed
  • Practice Areas
    • Employment Law
    • Business Litigation
  • News & Information
  • Contact Us
  • Search
  • Attorneys
    • Francisco Cabada
    • Sayema Hameed
  • Practice Areas
    • Employment Law
    • Business Litigation
  • News & Information
  • Contact Us
  • Search

Choice of Law & State Venue Provisions Now Restricted in California Employment Agreements

October 12, 2016 //  by Sayema Hameed//  Leave a Comment

On September 25, 2016, California Governor Jerry Brown approved a new law allowing California employees to unilaterally void forum selection or choice of law clauses (not the entire agreement) in employment contracts. S.B. 1241 regulates where and under what law California employees can sue and arbitrate. The new law will take effect on January 1, 2017.contract-1464917_1920

Impact of SB 1241

Most agreements allow contracting parties to select a forum to litigate or arbitrate a dispute. Under S.B. 1241, employers are prohibited from requiring, as a condition of employment, an employee who primarily resides and works in California to agree to any contractual provisions that will: 1) require the employee to litigate or arbitrate claims arising in California in a foreign forum (outside of California); and 2) deprive the employee of the protection of California employment laws. The new law also includes, but is not limited to, executive contracts, covenants, and non-compete agreements.

An employee must be represented by legal counsel when negotiating an out-of-state venue, forum, or choice of law term. If a forum selection or choice of law provision is included in an employment agreement, the reviewing court can enjoin reliance on the provision, declare it unlawful, and award reasonable attorney fees.

S.B. 1241 will be codified as Section 925 of California Labor Code. Employers should review any employment or arbitration agreements to make sure they are in compliance with the new law. Employee contracts may need to be revised. Contact our law office for more information about modifying your existing employment agreements.

Category: NewsTag: arbitration agreement, california employment law, choice of law, employment contract

Previous Post: « Sayema Hameed Named 2016 Southern California Rising Star by Super Lawyers
Next Post: EEOC Offers New Online Resource Center for Small Business Employers »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Categories

  • News
  • Press
  • Uncategorized

Archives

  • May 2022
  • February 2021
  • March 2020
  • October 2019
  • August 2019
  • June 2019
  • March 2019
  • December 2018
  • December 2017
  • July 2017
  • June 2017
  • October 2016
  • July 2016
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • August 2014
  • June 2014
  • February 2014
  • October 2013
  • August 2013
  • June 2013
  • May 2013
  • April 2013
  • February 2013
  • January 2013
  • December 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • February 2012
  • January 2012
  • June 2011
  • April 2011
  • September 2010
  • February 2010
  • March 2009
  • May 2008

Connect

           

Tags

#MeToo Abercrombie anti-discrimination arbitration arbitration agreement baby bonding California california employment law CFRA coronavirus COVID-19 credit report DFEH disability discrimination DLSE EDD EEOC employee employer employment contract employment discrimination employment law entertainment family medical leave FEHA FMLA gender expression gender identity harassment healthcare hijab independent contractor meal break NLRB paid family leave pandemic pregnancy disability leave religion religious discrimination sex discrimination sexual harassment Sick Leave Law small business social media wrongful termination

Copyright © 2023 Cabada Hameed LLP· · Sitemap · <a href"/disclaimer/" Disclaimer Log in