Mandatory arbitration agreements have become very common in a wide variety of jobs. Typically, the newly hired employee signs a raft of documents, one of which may include an arbitration agreement. Often, the employee has no recollection that s/he signed an arbitration agreement. One plaintiff attorney, recognizing that the employee may not know whether he
Mandatory arbitration clauses have become an accepted part of many contracts, when we buy cars, open bank accounts and when we apply for jobs. The mandatory arbitration clauses block employees and consumers from their day in court. But, those clauses are increasingly under attack, according to a recent story in the San Antonio Express News
I first wrote about this case here. An arbitrator failed to disclose his relationship with the attorney for one of the parties. The arbitrator, Robert Faulkner, a former US Magistrate, had long standing ties with the lawyer for one of the parties, Brett Johnson. The arbitration went well for Mr. Johnson of Fish and
A survey of likely voters in 2010 shows that the American public is generally opposed to mandatory arbitration clauses found in employment and consumer situations. 59% oppose forced arbitration clauses found in the fine print of employment and consumer agreements. 59% of likely voters support the Arbitration Fairness Act, a proposal which would prevent these
Jamie Leigh Jones, who claimed she was raped in Iraq when she served as a private contractor lost her case. See news report. She had sued her former employer, KBR. A Houston jury rejected her claims of fraud and rape. Ms. Jones acquired some fame when she testified in Congress opposing mandatory arbitration in
Arbitration is not popular with many people. Part of the problem with arbitration is a lack of accountability. There is no appeal from an award by an arbitrator. There is often a lack of information about the arbitrator. In a recent case, we see what goes on behind some arbitrations. The Fifth Court of Appeals
A majority of Americans oppose forced arbitration accoding to a recent survey. See HR Lawyer post. In a nationwide survey of 800 citizens, 59% opposed forced arbitration clauses in employment and consumer contracts. 59% support the Arbitration Fairness Act, a proposed statute in Congress. Support crosses political and gender boundaries. Even after voters hear
Mandatory arbitration holds few benefits for the employee. In the labor union context, it is helpful. The union and employer can pick the arbitrator they want. Both union and employer have knowledge of the different arbitrators and their particular biases. So, both sides can make an informed selection when they choose arbitrators. But, that does
NPR has a good story on the evils of mandatory arbitration in the workplace. Unfortunately, it is all too accurate. Mandatory arbitration simply does not work well in the non-union workplace. It favors employers over employees. Note the experience of one arbitrator who ruled against the company one time, after finding in favor of the