In summary
When Gov. Gavin Newsom signed Senate Bill 365 last week, he opened a new front in a complex, decades-long political and legal war between employers and unions.
When Gov. Gavin Newsom signed Senate Bill 365 last week, he opened a new chapter in a decades-long political and legal war over California laws governing relations between employers and their workers.
Briefly, SB 365 declares that when an employer loses a civil suit seeking to compel arbitration in a labor law dispute with a worker, the employer is not automatically allowed to freeze proceedings in the underlying issue by filing an appeal.
Thus, the measure weakens the long-standing ability of employers to require arbitration of such disputes, which flows from a pro-arbitration federal law, and is a significant victory for unions and lawyers who specialize in pursuing employment cases for workers.
Ironically, however, as the bill was winding its way through the Legislature this year, the U.S. Supreme Court declared that appeals of disputes over the applicability of arbitration in federal courts should freeze (stay, in legal jargon) the underlying cases.
In June, a legislative staff analysis of SB 365 warned legislators that the then-pending Supreme Court case “presents the potential for a more direct conflict with this bill.” The Supreme Court made its ruling on June 23, when the bill was awaiting a vote in the Assembly, but its sponsors proceeded anyway, finally sending it to Newsom on September 13.
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