Insights

On Sept. 22, 2021, Governor Newsom signed AB 701, aimed at regulating quotas in warehouse distribution centers, into law. Here is what employers need to know.

This morning, in its decision in Chamber of Commerce v. Bonta, No. 20-15291, the Ninth Circuit Court of Appeals vacated a January 2020 preliminary injunction against enforcement of AB 51, a 2019 California law effectively banning mandatory employee arbitration agreements. With the preliminary injunction vacated, the State of California is no longer barred from enforcing this law.

A California Court of Appeal has held – for the first time – that “trial courts have inherent authority to ensure that PAGA [Private Attorneys General Act] claims will be manageable at trial, and to strike such claims if they cannot be managed.” While other courts have recognized that this authority may exist based on similar contexts, this is the first time a California appellate court has done so. Manageability is an important consideration for defending PAGA claims. This ruling can be used to leverage unmanageability to limit the scope of the claims at trial which, in turn, can reduce the potential liability and encourage settlement.