Litigation & Arbitration,
Labor/Employment
Feb. 20, 2026
Should I Stay or Should I Go: The Clash between SB 365 and the FAA
California's SB 365 eliminates automatic stays on appeals of arbitration denials, giving trial courts discretion to balance efficiency, hardship and public-enforcement interests.
Thomas D. Rutledge
Attorney
Law Office of Thomas D. Rutledge
Statewide Employment Class Action and PAGA Litigation
Email: thomasrutledgelaw@gmail.com
California Senate Bill 365 (SB 365), effective Jan. 1, 2024, materially altered the procedural consequences of appealing an order denying a motion to compel arbitration. By amending California Code of Civil Procedure § 1294(a), the Legislature eliminated the automatic stay that previously attached upon such an appeal and provided trial court discretion. The change is procedu...
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