Can a California employer still make you sign an arbitration agreement after AB 2155?

Mostly yes. AB 2155 does not ban mandatory arbitration in California. It says a written arbitration agreement is not enforceable under the state’s arbitration statute to the extent the Federal Arbitration Act would not enforce it. That imports the federal carve-outs, such as certain transportation workers and sexual harassment claims. Most employment agreements stay enforceable if they are fair.

What does AB 2155 actually say?

One sentence of operative text, which governs every arbitration agreement under the state statute. AB 2155, by Assemblymember Aguiar-Curry, was approved on June 30, 2026 as Chapter 46 of the Statutes of 2026, per its bill text. It adds subdivision (b) to Code of Civil Procedure 1281: a written agreement to arbitrate “is not enforceable under this section to the extent the agreement is not enforceable” under the Federal Arbitration Act.

The bill’s purpose section explains the aim. The Legislature wants California’s statute to include every exclusion in the federal act, including the ones for seamen, railroad employees and other workers engaged in interstate commerce, and the 2021 federal law on sexual assault and sexual harassment disputes. Two law firm summaries report an effective date of January 1, 2027. The text I read says nothing about agreements already signed, so I am not predicting how courts will treat them.

Does it ban mandatory arbitration agreements?

No. California tried a ban and lost. AB 51, now Labor Code 432.6, barred employers from requiring arbitration as a condition of employment. In Chamber of Commerce v. Bonta (9th Cir., February 15, 2023), the court held the Federal Arbitration Act preempts AB 51, and a stipulated final judgment later enjoined it, per the U.S. Chamber’s case page.

AB 2155 does not try again. It limits arbitration only where the federal act already does. So an employer can still ask a California employee to sign an arbitration agreement on day one, and, with the AB 51 ban enjoined, that can generally be a condition of hire. What changes is the list of workers and claims where that agreement will not hold.

Who does it help, and who does it leave out?

It helps workers inside the federal exclusions, and anyone bringing a sexual harassment or sexual assault claim. Under 9 U.S.C. 402, a person alleging sexual harassment or assault can choose to void a predispute arbitration agreement and a class waiver. That federal rule applies to disputes arising on or after March 3, 2022, so AB 2155 mostly makes the state statute match it.

It does not help most office workers with wage, discrimination or retaliation claims. For them, the fairness floor is still Armendariz (2000) 24 Cal.4th 83. It requires a neutral arbitrator, more than minimal discovery, a written award, all the relief a court could give, and no unreasonable costs for the employee. It also expects the agreement to be mutual, not one-sided.

In practice, the people most affected are two groups: employers whose staff include drivers or delivery workers who cross state lines, and any employer facing a harassment claim from a worker who signed an arbitration clause at hire. For a 10 to 150 person office employer, the daily effect is small. The real work is making sure the agreement you already use would survive the fairness test, because a poorly drafted one costs you the forum you were trying to secure.

What should an employee check in an agreement already signed?

Start with the signature page and the carve-outs. Read the agreement for these points:

• Whether it lets you opt out, and how many days you had.
• Whether it covers both sides’ claims, or only yours.
• Who pays the arbitrator’s fees, since Armendariz bars charging you for them.
• Whether it limits remedies or the time to file below what a court allows.
• Whether you can still file with the Civil Rights Department or the Labor Commissioner.

Ask for your copy, because many people remember a click-through screen and not the terms. Labor Code 432 entitles you to a copy of anything you signed relating to getting or keeping the job. Representative claims under the Private Attorneys General Act are a separate question. In Viking River Cruises v. Moriana (2022), the Supreme Court held that individual PAGA claims can be compelled to arbitration, while a wholesale waiver of PAGA claims remains invalid.

What should an employer review in onboarding paperwork?

The fee rules are where employers get hurt. Under Code of Civil Procedure 1281.97 and 1281.98, an employer that does not pay required arbitration fees within 30 days of the due date is in material breach and can lose its right to compel arbitration. The employee may then go to court. Put payment on a calendar, assign an owner, and keep proof of each payment. A single missed deadline can turn a favorable forum into a court case you did not plan for.

Then review the agreement itself:

• Make it mutual, so it covers the company’s claims too.
• Cover all the relief available in court, and pay the arbitrator’s costs.
• Carve out sexual harassment and assault claims, and any workers the federal act excludes.
• Keep it as its own document, not buried in a handbook acknowledgment.
• Send it to counsel before you roll it out, because courts read these agreements strictly.

Pair this with your termination file practices. The termination documentation guide covers the paperwork around a separation, and the headcount guide shows which employment rules reach your size.

What should I watch next?

Three things. First, how courts read the new subdivision: the phrase “to the extent” invites arguments about which claims and which workers fall inside the federal exclusions, and I would expect those to be tested in 2027. Second, how it applies to agreements signed before the effective date, which the text leaves open. Third, whether the Legislature or Congress moves again on forced arbitration, since both have been active on the topic.

Until then, treat an arbitration agreement as enforceable unless one of the known exceptions applies. An employee with a sexual harassment or assault claim should not assume the agreement blocks a court filing, and an employer should not assume it does not. A short consult with an employment lawyer before signing or before filing is cheap compared with fighting over forum for a year.

What should I do this week?

Employers: pull your current arbitration agreement, check it against the list above, and calendar the January 1, 2027 date. Employees: find your signed copy and check the opt-out window and the fee clause. The 2027 law roundup has the other changes landing at the same time, and the California HR compliance check-up reviews your onboarding documents together. This is general information, not legal advice.

McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.