Why Gov. Brown Should Veto AB 465

The trial lawyers have succeeded in getting AB 465, identified as a “job killer,” through the legislature and on the desk of Governor. Brown.  The bill is a pure money grab and deserves a veto from the governor.

Trial lawyers are backing AB 465 because it will create more opportunities for them to profit from our state’s lawsuit system. The bill seeks to limit arbitration agreements in employment contracts, which will mean more opportunities – and more money – for the state’s trial attorneys. Who will pick up the tab? California employers, who will face higher litigation costs.

That’s why a huge coalition of organizations opposes this measure. Even organized labor groups that sponsored the bill don’t really support its goal of limiting these arbitration agreements. If they did, the bill would have also eliminated arbitration agreements in collective bargaining agreements.

The upshot is that even if AB 465 passes, union contracts would continue to be able to contain arbitration agreements. That’s because labor leaders know this bill will increase litigation costs for employers and cost jobs –and they don’t want their members to get hurt. And labor leaders also know that consumers and employees can actually fare better in arbitration than in court, as CALA has pointed out several times.

If Gov. Brown is serious about supporting job growth in this state, he should veto measures such as AB 465 that will increase opportunities for lawsuit abuse and make it harder for employers to hire workers.

Click here to use CALA’s online tool and urge Governor Brown to veto this bill.