Updates on Mandatory Employment Arbitrations

The “yes, you can” and the “no, you can’t” arguments echo down the hallways of many law firms and courthouses across the country. Can an employer mandate that disputes with employees be handled through arbitration? That very question has seemingly become a cottage industry unto itself, leaving disgruntled employees and frustrated employers in its wake.

Maybe that will change now?

Last week, Representative Jerry Nadler (he of Judiciary Committee fame) introduced legislation that would prohibit such arbitration clauses. A similar bill was introduced by Representative Hank Johnson as well.

Proponents of the mandatory arbitration issue tend to echo the sentiment that arbitrations are voluntary and serve to bring about a conclusion in a more expeditious manner. Opponents tend to argue that requiring arbitration actually suppresses the number of claims made.

With the two chambers of Congress being controlled by Democrats, there is a thought that these bills might get passed, particularly if the filibuster rules in the Senate are changed. This is worth monitoring as it progress through Congress.

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