Federal District Court Holds that New Jersey Statute is Preempted by the Federal Arbitration Act

Thursday, March 25, 2021 - 8:45pm

The U.S. Chamber filed a suit as co-plaintiff with the New Jersey Civil Justice Institute challenging a New Jersey statute that effectively prohibits employers in that state from using arbitration agreements in employment contracts.  The federal district court for the District of New Jersey released an opinion holding that the state statute is preempted by the Federal Arbitration Act and permanently enjoining the New Jersey attorney general from enforcing the statute.  The case is New Jersey Civil Justice Institute and U.S. Chamber v. Grewal.