California Severely Limits Employment-Related Choice of Law and Venue Provisions - Brownstein Hyatt Farber Schreck

California Severely Limits Employment-Related Choice of Law and Venue Provisions

Sep 30, 2016

Client Alert

Brownstein Client Alert, September 30, 2016

To follow up on our Client Alert of April 25, 2016, California Gov. Jerry Brown signed California Senate Bill 1241, codified as Labor Code section 925, into law earlier this week. This means that starting Jan. 1, 2017, out-of-state choice of law and venue provisions in California employment agreements are unlawful unless the employee is individually represented by counsel in negotiating the terms of the agreement. This law strips employers of the ability to designate the state in which employment lawsuits would be venued and what law should be applied, except in those rare circumstances where the employee is represented by his or her own legal counsel. 

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