BILL NUMBER: SB 1241	CHAPTERED
	BILL TEXT

	CHAPTER  632
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2016
	PASSED THE SENATE  AUGUST 31, 2016
	PASSED THE ASSEMBLY  AUGUST 31, 2016
	AMENDED IN ASSEMBLY  AUGUST 29, 2016
	AMENDED IN ASSEMBLY  AUGUST 19, 2016
	AMENDED IN ASSEMBLY  JUNE 20, 2016
	AMENDED IN ASSEMBLY  JUNE 14, 2016
	AMENDED IN SENATE  APRIL 18, 2016
	AMENDED IN SENATE  MARCH 29, 2016

INTRODUCED BY   Senator Wieckowski

                        FEBRUARY 18, 2016

   An act to add Section 925 to the Labor Code, relating to
employment contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1241, Wieckowski. Employment contracts: adjudication: choice of
law and forum.
   Existing law regulates the terms and conditions of labor
contracts. Existing law prohibits an employer from requiring an
employee or applicant for employment to agree, in writing, to any
term or condition that is known by the employer to be illegal.
Existing law creates the Division of Labor Standards Enforcement,
which is under the direction of the Labor Commissioner, and generally
commits to the commissioner the authority and responsibility for the
enforcement of employment laws.
   This bill, for contracts entered into, modified, or extended on or
after January 1, 2017, would prohibit an employer from requiring an
employee who primarily resides and works in California, as a
condition of employment, to agree to a provision that would require
the employee to adjudicate outside of California a claim arising in
California or deprive the employee of the substantive protection of
California law with respect to a controversy arising in California.
The bill would make any provision of a contract that violates these
prohibitions voidable, upon request of the employee, and would
require a dispute over a voided provision to be adjudicated in
California under California law. The bill would specify that
injunctive relief is available and would authorize a court to award
reasonable attorney's fees. The bill would provide that adjudication
includes litigation and arbitration for purposes of these provisions.
The bill would except from these provisions a contract with an
employee who was represented by legal counsel, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 925 is added to the Labor Code, to read:
   925.  (a) An employer shall not require an employee who primarily
resides and works in California, as a condition of employment, to
agree to a provision that would do either of the following:
   (1) Require the employee to adjudicate outside of California a
claim arising in California.
   (2) Deprive the employee of the substantive protection of
California law with respect to a controversy arising in California.
   (b) Any provision of a contract that violates subdivision (a) is
voidable by the employee, and if a provision is rendered void at the
request of the employee, the matter shall be adjudicated in
California and California law shall govern the dispute.
   (c) In addition to injunctive relief and any other remedies
available, a court may award an employee who is enforcing his or her
rights under this section reasonable attorney's fees.
   (d) For purposes of this section, adjudication includes litigation
and arbitration.
   (e) This section shall not apply to a contract with an employee
who is in fact individually represented by legal counsel in
negotiating the terms of an agreement to designate either the venue
or forum in which a controversy arising from the employment contract
may be adjudicated or the choice of law to be applied.
   (f) This section shall apply to a contract entered into, modified,
or extended on or after January 1, 2017.