Assembly Bill 51, which goes into effect on Jan. 1, prohibits employers from requiring, as a condition of employment, that their employees agree to arbitrate all disputes. Companies and employees can still voluntarily enter into arbitration agreements, but employees can't be required to sign them. When they choose not to sign, the employer cannot retaliate. The law does not invalidate existing arbitration agreements.
When Assembly Bill 5 was signed into law in September, it codified the California Supreme Court's decision in Dynamex Operations West v. Superior Court of Los Angeles County. That decision made it much more difficult to classify workers as independent contractors rather than employees.