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SB 1241, recently signed into law, and to go in effect January 1, 2017, will limit the ability of employers to choose a favorable law and forum when contracting with California employees. Specifically, the provision to be codified as California Labor Code Section 925, prohibits an employer from requiring California employees to agree to any provision which would require the employee to adjudicate outside of California for a claim arising in California; or deprive the employee of substantive protection of California state law as to a controversy arising in California. An exception does exist for those employees who are represented by counsel in negotiating the terms of an agreement. Moreover, pre-existing agreements (pre-January 1, 2017) will be unaffected.

Published in Corporate