Empty cubicles are seen as the first phase of FMC Corporation employees return to work in the office in Philadelphia, Pennsylvania, U.S., June 14, 2021. REUTERS/Hannah Beier/File Photo
August 15, 2022 - The past decade has seen a variety of hot topics emerge in the labor and employment law field. This includes independent contractor classification, state and local paid sick leave and similar laws, and the expansion of anti-discrimination laws. Undoubtedly, however, the issue of mandatory workplace arbitration agreements is at or near the top of the list.
In that vein, many employers require their employees to agree to arbitrate employment-related legal claims rather than pursue them in court. This is for a host of reasons, including that arbitration can be, and often is, mutually beneficial, allowing parties to resolve claims efficiently and privately. However, in response to vocal public criticism of arbitration agreements, a growing number of federal and state legislators are working to curb their use, particularly in the context of sexual misconduct.
This article will discuss the federal and state legal landscapes with respect to the use of arbitration agreements in the workplace, and where we may be headed in the future on that front.
Current federal landscape
Employment-related arbitration agreements have, under the Federal Arbitration Act (FAA), long been considered generally enforceable. Adopted in 1925, the FAA directs courts to enforce arbitration agreements...
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