BILL NUMBER: SB 410	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Kuehl

                        FEBRUARY 21, 2001

   An act to add Section 1670.1 to the Civil Code, and to amend
Section 1281 of the Code of Civil Procedure, relating to arbitration.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 410, as introduced, Kuehl.  Arbitration.
   Existing law provides that a written agreement to submit to
arbitration an existing controversy or a controversy thereafter
arising is valid, enforceable, and irrevocable, save upon such
grounds as exist for the revocation of any contract.
   This bill would provide, as an exception thereto, that no employer
may require an employee to agree to arbitrate any claims arising
under the Fair Employment and Housing Act, as specified, as a
condition of employment or continued employment; or may harass,
discharge, expel, or otherwise discriminate against any person in any
term or condition of employment because he or she has refused to
agree to arbitrate any such claim; and any arbitration provision
obtained in violation of this provision is void and shall be deemed
involuntary, beyond the reasonable expectations of the employee,
unconscionable, and against public policy.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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


  SECTION 1.  The Legislature finds and declares that it is the
public policy of the State of California to ensure that employees
have the full benefit of the rights and protections contained in the
Fair Employment and Housing Act and that employees not be deprived of
those rights and protections by the use of mandatory and involuntary
predispute binding arbitration provisions.
   Further, involuntary predispute binding arbitration provisions
which limit access to the Department of Fair Employment and Housing
or the courts for enforcement of the provisions of the California
Fair Employment and Housing Act are against the policy of this state.

  SEC. 2.  Section 1670.1 is added to the Civil Code, to read:
   1670.1.  (a) No employer may require an employee to agree to
arbitrate any claims arising under the California Fair Employment and
Housing Act (Part 2.8 (commencing with Section 12900) of Division 3
of Title 2 of the Government Code), as a condition of employment or
continued employment.
   (b) No employer may harass, discharge, expel, or otherwise
discriminate against any person in any term or condition of
employment because he or she has refused to agree to arbitrate any
such claim.
   (c) Any arbitration provision obtained in violation of this
section is void and shall be deemed involuntary, beyond the
reasonable expectations of the employee, unconscionable, and against
public policy.
  SEC. 3.  Section 1281 of the Code of Civil Procedure is amended to
read:
   1281.   A   (a) Except as provided in
subdivision (b), a  written agreement to submit to arbitration
an existing controversy or a controversy thereafter arising is valid,
enforceable and irrevocable, save upon such grounds as exist for the
revocation of any contract.  
   (b) Subdivision (a) does not apply to any predispute arbitration
agreement between an employer and employee entered into in violation
of Section 1670.1 of the Civil Code.