Problematic Forced Arbitration Clauses Are Included In Many Company's Employment Terms & Conditions
These clauses often favor the employer over the employee. And many employees, especially those who are underemployed, are quick to sign regardless of this unjust clause.
Jan 19, 2021
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Forced arbitration means that when an employee has a dispute against a company, they are not able to take it to court to present their case in front of a jury of their peers. Instead, the proceedings are kept private, and a single arbitrator decides the outcome of the case. While there are similar rules of law, there are critical differences and incentives at play.
For example, arbitration is often paid for by the company, who also pays the arbitration organization, which means there's less neutrality. For example, in a court of law, the judges are paid by the state or country's tax dollars, which comes from its citizens.
Forced arbitration is also a problem because newly hired employees are forced to sign these legal agreements if they want to get a job with the company. This is is often a prerequisite for a job.
Finding a job is already hard enough, especially in the employment precarity during the COVID-19 pandemic. And because almost all companies include these forced arbitration provisions in their contracts, employees can't easily find another employer that does not include these clauses.
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