SB 1241, as amended, Wieckowski. Contracts.
Existing law, the Consumer Contract Awareness Act of 1990, defines a consumer contract as a writing prepared by a seller that provides for the sale or lease of goods or services or the extension of credit, as specified, for personal, family, or household purposes, among other provisions. The act requires a seller, which includes financial institutions, to deliver a copy of a consumer contract to the consumer at the time the contract is signed, and it prohibits the waiver of any provisions of the act.
This bill would prohibit, for contracts entered into, modified, or extended on or after January 1, 2017, a seller from requiring a consumer, as a condition of entering into a contract, to agree to a provision that would require the consumer to adjudicate outside of California a claim arising in California or deprive the consumer of the protection
of California law with respect to a controversy arising in California. The bill would make any choice of venue or choice of law provision voidable, upon request ofbegin delete the consumer,end deletebegin insert a consumer who primarily resides in California,end insert if the provision would violate either of those prohibitions as provided. The bill would make injunctive relief available and would authorize a court to award a consumer reasonable attorney’s fees. The bill would provide that adjudication includes litigation and arbitration for purposes of these provisions.
This bill also would create an analogous set of rights, prohibitions, and requirements, as described above, in connection with employmentbegin delete contracts.end deletebegin insert
contracts for an employee who primarily resides and works in California.end insert The bill would except from these employment provisions a contract with an employee who is represented by legal counsel, asbegin delete specified.end deletebegin insert specified, or a talent agency, as defined.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1799.208 is added to the Civil Code, to
2read:
(a) A seller shall not require a consumer, as a
4condition of entering into a contract, to agree to a provision that
5would do either of the following:
6(1) Require the consumer to adjudicate outside of California a
7claim arising in California.
8(2) Deprive the consumer of the protection of California law
9with respect to a controversy arising in California.
10(b) begin deleteAny end deletebegin insertNotwithstanding any other law, any end insertchoice
of venue
11or choice of law provision is voidable, upon request ofbegin delete the begin insert a consumer who primarily resides in California,end insert if the
12consumer,end delete
13provision would do either of the following:
14(1) Require the consumer to adjudicate outside of California a
15claim arising in California.
16(2) Deprive the consumer of the protection of California law
17with respect to a controversy arising in California.
18(c) If a provision is rendered void at the request of the consumer,
19as described in subdivision (b), the matter shall be adjudicated in
20California and California law shall govern
the dispute.
P3 1(d) In addition to injunctive relief and any other remedies
2available, a court may award a consumer who is enforcing his or
3her rights under this section reasonable attorney’s fees.
4(e) For purposes of this section, adjudication includes litigation
5and arbitration.
6(f) This section shall apply to a contract entered into, modified,
7or extended on or after January 1, 2017.
Section 925 is added to the Labor Code, to read:
(a) An employer shall not require an employee or job
10applicant, as a condition of employment, to agree to a provision
11that would do either of the following:
12(1) Require the employee to adjudicate outside of California a
13claim arising in California.
14(2) Deprive the employee of the protection of California law
15with respect to a controversy arising in California.
16(b) begin deleteAny end deletebegin insertNotwithstanding any other law, any end insertchoice
of venue
17or choice of law provision is voidable, upon request ofbegin delete the begin insert an employee who primarily resides and works in
18employee,end delete
19California,end insert if the provision would do either of the following:
20(1) Require the employee to adjudicate outside of California a
21claim arising in California.
22(2) Deprive the employee of the protection of California law
23with respect to a controversy arising in California.
24(c) If a provision is rendered void at the request of the employee,
25as described in subdivision (b), the matter shall be adjudicated in
26California and California law
shall govern the dispute.
27(d) In addition to injunctive relief and any other remedies
28available, a court may award an employee who is enforcing his or
29her rights under this section reasonable attorney’s fees.
30(e) For purposes of this section, adjudication includes litigation
31and arbitration.
32(f) This section shall not apply to a contract with an employee
33who is in fact individually represented by legal counsel in
34negotiating the terms of an agreement to designate either the venue
35or forum in which a controversy arising from the employment
36contract may be adjudicated or the choice of law to be applied.
37
(g) This section shall not apply to a contract for which the
38employee was represented by a talent agency, as defined in
39subdivision (a) of Section 1700.4.
P4 1 40(g)
end delete
P4 1begin insert(h)end insert This section shall apply to a contract entered into, modified,
2or extended on or after January 1, 2017.
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