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California: Limitations on choice of law and forum provisions in employment contracts takes effect

January 1, 2017

On September 25, 2016, Gov. Brown signed a law prohibiting employers from requiring employees who reside and work in California to agree to an agreement that:

  • requires the employee to adjudicate disputes arising in California in a forum outside of California
  • deprives the employee of the protections of California law regarding a controversy arising in California

Such unlawful choice of law and forum provisions are voidable by the employee except when the employee is represented in contract negotiations by legal counsel.

The changes apply to any contract entered into, modified, or extended after January 1, 2017.

For more information, read CA Senate Bill 1241.


January 1, 2017
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