• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Arbitration required for more than half of U.S. workers

Get PDF file

by on
in Employment Law,Human Resources

More than half of private-sector nonunion workers must sign arbitration agreements as a condition of employment, according to a new study by the Economic Policy Institute.

Arbitration agreements require employees to waive their right to sue to resolve employment disputes, instead of taking them to arbitration. They typically cover Title VII discrimination and harassment charges, Fair Labor Standards Act wage-and-hour disputes and ADA and FMLA claims.

Data collected by Cornell University Professor Alexander Colvin show that only about 2% of employees were covered by mandatory arbitration agreements in 1992. Now, 55% are—some 60 million workers.

Colvin found that 41% of employees subject to mandatory arbitration also have waived their right to participate in class-action lawsuits.

Leave a Comment