| Starting January 1, 2027, AB 2155 makes an arbitration agreement unenforceable under the California Arbitration Act to the extent it isn’t enforceable under the Federal Arbitration Act. For years, many agreements had a simple backup plan: if the FAA doesn’t apply, fall back on California law. That backup is gone. Two groups feel this first. Transportation workers exempt from the FAA can no longer be compelled to arbitrate under state law. And employees bringing sexual harassment or sexual assault claims can choose court, and state law no longer offers a way around that. |
