Employee Arbitration Clauses Face Supreme Court Challenge that Could Hurt Workers

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If the Supreme Court rules in favor of the individual arbitration clauses, then the courts will no longer need to be involved in employment disputes. Individual arbitrators would handle suits between the employers and each employee. The Supreme Court will be deciding how much power employees have as a group and whether they can sue employers as a group. Consider the cost for employers when they should deal with large groups of employees – hundreds or thousands of them. Class action is easier for employees, too. So, consider the work for individual employees who are forced to arbitration against a well-prepared employer. The Supreme Court’s decision, especially if it is in favor of the businesses, could certainly affect working conditions for the foreseeable future. Employers could be more likely to violate labor laws because the consequences would be minimal. Employees would have very little recourse as the courts would be taken out of the equation.

 

Arbitration does not favor the employee

Arbitration is not in the best interest of the employees, but it is likely that the courts will rule in favor of employers. When employers and employees use arbitration, employees are at a disadvantage because the dispute is a private matter. Arbitration also limits the information that employees can use in the dispute, which puts them at a disadvantage against their powerful employers. They are also unable to appeal against unfavorable decisions.