We are writing to make sure you are aware of California Labor Code Section 925, which may be relevant to your business.
Effective as of January 1, 2017, employers may not require employees who primarily reside and work in California to sign any employment-related contracts containing a choice of law other than California or a choice of forum (including arbitration) outside of California unless the employee was represented by counsel in connection with the negotiation of the choice of law and/or forum provision. This new law does not apply retroactively for agreements entered into before January 1, 2017.
Any provision of a contract that violates this new law is voidable by the employee, and any dispute arising thereunder will be adjudicated in California under California law. Additionally, the employee is entitled to recover reasonable attorneys' fees related to any such dispute.
Please feel free to contact any member of the employment group if you have questions about this new law.
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