Forced arbitration clauses get a bad rap. Understandably — most people don’t even know that after some purchase or acceptance of a job that they are waiving their right to sue potential wrongdoers in court. Businesses, however, love them; mandating arbitration in the event of conflicts is right up there with being sure to register your business in Delaware, especially once you factor in the potential to hire serial arbitrators that “unofficially” have your back when something goes wrong. Egregious limitations on a party’s ability to seek justice in court because of forced arbitration clauses sometimes see the light of day. So much so that Congress passed a law called the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA) to ensure that instances of sexual assault and sexual harassment aren’t swept under the table by such “agreements.” There has been a recent push for the enactment of a similar law that would prevent forced arbitration in response to race-based conflicts. From Bloomberg Law:
Last month, Rep. Hank Johnson (D-Ga.) and Sen. Cory Booker (D-N.J.) introduced the Ending Forced Arbitration of Race Discrimination Act (H.R. 3038/S.1408), which would give workers the option of bringing their racial bias claims to court even if they initially agreed to arbitrate such workplace disputes.
Passage will be an uphill battle, but some see the bill as a way to tilt the balance of power and allow workers to use class actions to stop race...
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