Legislation is Proposed to Keep Employment Claims (and Class Actions) In California

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Seeking to ensure that California’s Labor Code protections be interpreted and enforced by California courts, the California Legislature is considering Assembly Bill 267, which would amend the Labor Code with the creation of Section 924. If passed and signed into law by newly-inaugurated California Governor Jerry Brown, Section 924 will invalidate any clause in an employment contract requiring that an employee, as a condition of obtaining or continuing employment, agree to a forum or choice of law other than California to resolve a dispute with his or her employer regarding employment issues that arise in California. Former Governor Arnold Schwarzenegger twice vetoed similar legislation. However, considering Governor Brown’s distinctly pro-labor record, it appears more likely than not that Section 924 will become law, possibly by January 1, 2012.