Friendly Forum For California Employees

California employers often require employees, as a condition of employment or continued employment, to sign a document agreeing to have any future employment claims determined in accordance with another state’s laws (“choice of law” provision).

Such documents often also designate foreign states (or even foreign countries) as the only appropriate location for such claims (“choice of forum” provision).

These provisions have both the purpose and effect of depriving California employees of the rights guaranteed to them under California’s strong employment laws. For example, an employee terminated by her employer because of her recently announced pregnancy will likely forego her right to sue her employer for wrongful termination when she realizes she must file her in case in Massachusetts.

California is now one step closer to eliminating this tactic that employers use to deprive employees of their California employment rights. On August 30, 2011, the California state senate passed Assembly Bill 267 (“AB-267”) by a 21-15 vote. This bill, which passed through the state assembly in May 2011, is now awaiting Governor Brown’s signature to make it law.

Will The Bill Become A Law?

If Governor Brown signs AB-267 into law (and it is widely believed he will), that law will make void and unenforceable as against public policy any provision in an employment contract that requires an employee, as a condition of obtaining or continuing employment, to use a forum other than California, or to agree to a choice of law other than California law, to resolve any dispute with an employer regarding employment-related issues that arise in California.

Employers will no longer be able to select the laws of another state that may be more friendly to employers. Employers will no longer be able to force employees to travel across the country to vindicate their California employment rights. California employment rights will be determined under California law, and they will be determined right where they belong: here in California.

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