Legislation Introduced to Keep California Employment Actions in California

Assembly Bill 267 (Swanson, D.), introduced on Monday, would create Labor Code section 924, invalidating any clause in an employment contract that requires an employee, as a condition of obtaining or continuing employment, to 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.

Section 924 would read as follows:

924. (a) An employer shall not require an employee or job applicant, as a condition of employment, to waive the application of California law to any dispute relating to employment, or the securing of employment, in California.
(b) An employer shall not require an employee or job applicant, as a condition of employment, to resolve outside of California any dispute regarding employment, or the securing of employment, in California.
(c) Any choice of law, choice of forum, or choice of venue provision in a job application, employment agreement, employment handbook, or other statement of an employer’s policies applicable to its employees, is unconscionable, violative of the public policy of this state, and void if the provision would have the effect of either
of the following:
(1) Requiring the employee or job applicant, as a condition of employment, to resolve outside of California claims that arose from employment, or the securing of employment, in California.
(2) Depriving the employee or job applicant of the protection of California law for claims arising from employment, or the securing of employment, in California.
(d) Nothing in this provision affects the right of an employee to voluntarily agree to a choice of law or forum selection provision that is not required as a condition of employment and that is the subject of independent consideration.

Governor Schwarzenegger vetoed similar legislation the last two years. Information on the bill is available here.