Governor Davis Vetoes Arbitration Ban

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Oct. 17, 2003 Share this on FacebookTweet thisEmail this to a friend

On his final day to dispense with legislative proposals before him, Governor Gray Davis (D) vetoed AB 1715 (Assembly Judiciary Committee) that sought to prohibit pre-dispute arbitration agreements in employment contracts. CMTA opposed this measure and lobbied the Governor's office for a veto.

(To see CMTA's veto request, go to

AB 1715 would have significantly restricted a practice and procedure that has served employees and employers well for many years. Arbitration has proven to be an effective and efficient means of resolving disputes in a fair and timely manner. CMTA strongly believes that arbitration remains the most cost-effective means for resolving disputes for both employee and employer.

While Governor Davis' veto message indicated his belief that the arbitration process needs to be addressed to ensure that it is a fair and cost-efficient practice for all parties, he cited another measure that he signed into law previously that contained such protections. Davis said, "I was pleased to sign SB 475 (Escutia) in 2001, which provided for the creation of ethical guidelines for arbitrators in alternative dispute resolution (ADR)."

CMTA applauds Governor Davis for his effort to preserve an employer's ability to utilize pre-dispute arbitration agreements in employment contracts by vetoing AB 1715.
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