AB 2155 Closes the Arbitration Enforceability Gap

Many California employers believe an arbitration agreement drafted a few years ago is still doing its job, quietly routing disputes out of court.  Starting January 1, 2027, that assumption needs a second look.

Governor Newsom signed Assembly Bill 2155 on June 30, 2026, amending Code Civ. Proc. § 1281 to provide that any arbitration agreement unenforceable under the federal Arbitration Act is also unenforceable under California’s own Arbitration Act.  Before this amendment, a gap existed where an agreement could theoretically survive under one framework even after failing under the other.  That gap closes on the effective date.

The practical break point is simple: an older arbitration agreement drafted around prior enforceability assumptions may not hold up once both frameworks are aligned.  If your agreement has unresolved unconscionability issues, procedural defects, or provisions that have already drawn scrutiny under federal case law, those same defects now travel straight into the state analysis with no separate escape route.

The corrective step is not complicated, but it does require a real review.  An arbitration agreement written five years ago, under a different legal landscape, deserves a fresh look before the new rule takes effect, not after a dispute arises and the agreement is tested for the first time.

If your business relies on an arbitration agreement you haven’t reviewed recently, six months is enough time to fix it and not enough time to wait; contact Michael Trust Law, APC for a no-charge initial consultation.  The facts determine what needs to be addressed — and how much of a conversation that takes.

This post shares general information based on common patterns I see in California workplaces.  It is not legal advice, does not create an attorney-client relationship, and outcomes depend on specific facts — no lawyer can guarantee a result.  Past results do not guarantee or predict future outcomes.  AI may have been used to create this post.  All content reviewed by a CA attorney before publication.