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Article

20 Sep 2019

Auteur:
Galen Sherwin & Vania Leveille, American Civil Liberties Union (ACLU)

It’s Time to End Forced Arbitration

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If you own a credit card or a bank account, use a ride-sharing service, made an online purchase, or work in corporate America, chances are you have signed a forced arbitration agreement: a promise that, if any disputes arise between you and your employer or the business, you won’t sue. Hidden in the fine-print of a contract you may not even remember signing is language that says you’ve agreed, in advance, to give up your right go to court.

But today, the House of Representatives passed the FAIR Act, legislation that would prohibit the use of forced arbitration in employment discrimination and consumer contract cases. 

Little known to consumers and employees, the use of this sneaky practice is on the rise—it has doubled in scope between the 1990s, and currently impacts more than 60 million workers. These kinds of agreements are prevalent in female dominated industries as well as in low-wage fields and industries dominated by women of color.

The widespread use of forced arbitration agreements is one major reason that many valid sexual harassment cases, and other discrimination cases, never see the light of day — and repeat offenders are not held to account.

 But what they don’t tell you is that arbitration also lacks critical procedural safeguards — for example, permitting access to evidence from the other side that can be the key to proving your claims . . .The arbitrators may or may not be lawyers, and may or may not be trained in resolving discrimination cases. Results are secret, helping companies evade public accountability. The outcome is binding, and there is generally no right to an appeal.

But the FAIR Act could finally allow workers, consumers, and others to choose how they wanted to pursue their dispute.