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Arbitration on the Decline

By Net Assets posted 05-10-2019 07:36 AM


(from Fisher Phillips) Some companies are ending their mandatory arbitration policies. Why now?

  • Public pressure in the wake of the #MeToo movement. Arbitration agreements and the confidentiality associated with them kept victims of sexual harassment silent by blocking them from the public court system and keeping their claims hidden.
  • Rising cost of endorsing arbitration agreements. Employers were finding themselves mired in costly disputes over mundane decisions even before parties began arguing their claims.

Despite these problems, arbitration is still worthwhile and might be reserved for relatively banal claims. Companies might also consider making it a voluntary option instead of mandatory.

More at Fisher Phillips

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