May 4, 2009

Outlawing Mandatory Pre-Dispute Arbitration Agreements

Employers are requiring with greater frequency that employees accept mandatory arbitration as a condition of employment. In difficult economic times, employees are less likely to reject a job conditioned upon accepting mandatory arbitration. Indeed, employees often agree to waive their rights to go to court over future employment disputes in exchange for at-will employment. Although arbitrations are not inherently inappropriate for resolving employment disputes, an employee's acceptance of mandatory arbitration is rarely, if ever, voluntary.

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April 11, 2009

U.S. Supreme Court Accepts Mandatory Arbitration of Discrimination Claims for Unionized Employees

The United States Supreme Court recently ruled that a union could contract away a union member's rights to pursue a statutory discrimination claim in court. In 14 Penn Plaza L.L.C. v. Pyett, the Supreme Court considered whether a union member with an age discrimination claim under the Age Discrimination Employment Act ("ADEA") could be required to privately arbitrate the claim rather then pursue it in court. Surprisingly, a divided Supreme Court concluded that a union member could be mandated by a collective bargaining agreement ("CBA") to arbitrate a statutory discrimination claim.

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