On September 25, 2016, California Governor Jerry Brown signed S.B. 1241 into law, prohibiting employers doing business in the Golden State from requiring California employees, as a condition of employment, to agree to non-California choice-of-law or venue provisions for claims arising in California, either in litigation or arbitration. Such provisions are frequently found in employment, arbitration, or non-compete agreements. The new law will be codified as California Labor Code section 925, and will apply to contracts entered into, modified, or extended on or after January 1, 2017.
The New Gold Standard: S.B. 1241 Limits Employers’ Ability to Include Non-California Venue or Choice-of-Law Provisions in Contracts with California Employees
