For years, California workers have been required to sign arbitration agreements as a condition of employment — waiving their right to take workplace disputes to court. A new bill, Assembly Bill 3080 (AB 3080), could soon change that.
If passed, AB 3080 would make it unlawful for employers to force employees or independent contractors to agree to arbitration for claims under California’s key worker protection laws, including the Fair Employment and Housing Act (FEHA) and the Labor Code.
At Employees First Labor Law (EFLL), we believe every worker deserves the right to choose how and where to pursue justice. Here’s what you need to know about this potentially groundbreaking legislation.
What Is AB 3080?
AB 3080 is a California legislative proposal that seeks to amend FEHA and the Labor Code to ban mandatory arbitration agreements as a condition of employment, continued employment, or receipt of workplace benefits.
Under this bill, it would be illegal for an employer to:
- Require any employee or applicant to waive their right to file or pursue a claim in court under FEHA or the Labor Code.
- Retaliate, discriminate, or refuse to hire someone for declining to sign an arbitration agreement.
- Force arbitration for claims involving wages, harassment, discrimination, retaliation, or wrongful termination.
Put simply: AB 3080 aims to restore employees’ choice—to arbitrate if they wish, or to take their claims to court if they prefer.
Why This Matters
1. Forced Arbitration Tilts the Playing Field
Arbitration often benefits employers because:
- Arbitrators are usually paid by the company, not the employee.
- Proceedings are private, keeping patterns of wrongdoing out of public record.
- Employees have limited discovery rights and no jury.
AB 3080 seeks to bring these disputes back into the public court system—restoring transparency and fairness.
2. Protection for Vulnerable Workers
Low-wage workers and contractors are often pressured to sign arbitration agreements without realizing the consequences.
If AB 3080 passes, it would shield workers from coercion and ensure that claims like harassment, discrimination, and wage theft can be heard openly in court.
3. Accountability for Employers
Public lawsuits encourage accountability. They create precedent, deter violations, and expose unlawful practices that arbitration often hides.
Legal Background
California has long battled over arbitration rights.
- In 2019, AB 51 attempted a similar ban on mandatory arbitration but was blocked by federal courts due to preemption under the Federal Arbitration Act (FAA).
- AB 3080 builds on that effort with refined language meant to withstand federal scrutiny while reaffirming California’s public policy against forced waivers of legal rights.
If enacted and upheld, AB 3080 could dramatically change employment law litigation in California, giving employees more power and public recourse.
How This Affects You
If You’re an Employee:
- You cannot be forced to waive your right to go to court for wage, discrimination, or harassment claims.
- You’ll have a choice—arbitrate voluntarily or file a public lawsuit.
- Employers cannot retaliate against you for refusing to sign an arbitration agreement.
If You’re an Employer:
- You may need to revise hiring packets, onboarding paperwork, and arbitration templates before 2026.
- Existing agreements could become unenforceable for FEHA and Labor Code claims.
- Non-compliance could expose you to civil penalties and private litigation.
EFLL Insight: The Bigger Picture
AB 3080 reflects a growing national movement to end forced arbitration, especially for discrimination and sexual harassment cases.
The federal Ending Forced Arbitration Act (2022) already banned mandatory arbitration for sexual harassment; California is now pushing to extend that protection to all workplace rights.
This signals a return to open justice—where workers’ voices are heard in courtrooms, not hidden behind closed arbitration doors.
What Comes Next
AB 3080 is currently advancing through legislative committees. If signed into law, it would likely take effect on January 1, 2026, giving employers time to adjust and employees new leverage in workplace disputes.
EFLL will continue tracking this bill and will provide updates as it moves through the Legislature.
Final Takeaway
Mandatory arbitration has long silenced California workers.
If AB 3080 passes, that could finally change—giving every employee the right to choose public accountability over private secrecy.
If you’ve been forced to sign an arbitration agreement, or believe your employer has violated your rights, contact Employees First Labor Law today.
Our experienced attorneys will review your agreement, evaluate your options, and fight to ensure your rights are protected.
Employees First—Always.
We’re Ready to Help
