posted by admin on Dec 29
The Arbitration Fairness Act of 2009 May Impact Employment Claims
The proposed Arbitration Fairness Act of 2009 is pending in both houses of Congress and will, if passed, amend the Federal Arbitration Act to prohibit mandatory arbitration of employment claims unless provided for under the terms of a collective bargaining agreement. Furthermore, employees would be prohibited from waiving their right to bring constitutional or statutory claims, such as discrimination claims, to court.
In introducing the bill, Senator Russ Feingold of Wisconsin made clear that while arbitration has “advantages” it also “can be used as a weapon by the stronger party against the weaker party.” Senator Feingold also stated the opinion that arbitration provisions should be utilized only when both parties knowingly agree to arbitrate after the dispute has arisen.
Although arbitration is often, but not always, a less expensive, quicker way to litigate disputes, statistics indicate that in employment matters and consumer disputes, employers and companies are much more likely to prevail than employees and consumers. The passage of the Arbitration Fairness Act of 2009 will go a long way in protecting employee and consumer rights.
