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The FAA generally permits employers to mandate employment arbitration with their employees and applicants, provided their agreements constitute enforceable agreements under general contract principles, and AB 51 is preempted by the FAA.
They prohibit employees from bringing claims before a judge or jury for wage theft, discrimination and other violations of federal law. Instead, disputes must be resolved through a private arbitrator.
A civil case is eligible for a mandatory arbitration if the initial amount sought for damages is less than $50,000.
Even if you don't currently have a dispute with the company, it is a good idea to opt out of the forced arbitration clause to preserve your options. You can always agree later to use an arbitrator to resolve any dispute. Moreover, if you have opted out, you will have more negotiating power if there is a problem.
An example of language generally contained in a mandatory arbitration clause is: ?All disputes or conflicts arising out of the present contract shall be settled ing to arbitration rules.?