How California’s Assembly Bill 2155 Stands to Impact Arbitration Agreements in the State

Short summary

California's AB 2155, signed June 30, 2026, amends CCP Section 1281 to make arbitration agreements unenforceable under the California Arbitration Act to the extent they would be unenforceable under the Federal Arbitration Act. This closes the CAA loophole for transportation-worker exemptions and codifies EFAA protections for sexual assault and harassment claims. Employers should reassess arbitration agreements before the law takes effect January 1, 2027.

• •AB 2155 aligns California's CAA with FAA exclusions, effective January 1, 2027
• •Closes loophole that let employers compel arbitration under state law when FAA exemption applied
• •Employers should reassess arbitration agreements for transportation workers and harassment claims

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