Employee Survival Guide® - Congress Ends Forced Arbitration in Sexual Harassment Cases

Starting point is 00:00:00 Hey, it's Mark, and welcome to the next edition of the Employee Survival Guide, where I tell you what your employer does not want you to know about and more. Today we'll be talking about a big deal. Congress just passed a bill that said forced arbitration is banned in sexual harassment cases nationwide. The U.S. Senate approved a bill from the House that ends forced arbitration in sexual assault and sexual harassment cases. The bill

Starting point is 00:00:25 will be signed into law by President Biden. This is a gigantic win for employees, male and female alike, as sexual harassment affects everyone. The White House issued a statement in support on February 1, 2022. Quote, under current law, many employment and other contracts require binding arbitration for a wide range of matters before a dispute arises, which denies survivors the ability to decide whether to pursue their claim with the procedural protections provided by the courts and silences victims of abuse by forcing them into a confidential dispute form without the right to appeal. More than 60 million Americans are subject to mandatory arbitration clauses in the workplace, often without realizing it until they come forward to bring a claim against their employer.

Starting point is 00:01:10 The report of the co-chairs of the U.S. Equal Employment Opportunity Commission Select Task Force on the Study of Harassment in the Workplace notes that between 50 and 75 percent of women have faced some form of unwanted, unwelcome sexual harassment in the workplace. of women have faced some form of unwanted, unwelcome sexual harassment in the workplace. Additionally, contracts for services may include mandatory arbitration clauses in the fine print that shield companies and businesses from being held publicly accountable for the harm caused. According to Senator Kirsten Gillibrand of New York, quote, this bill is one of the most significant workplace reforms in American history. It is a major step forward, changing a system that uses secrecy to protect perpetrators and We have written about forced arbitration and also called mandatory arbitration many times.

Starting point is 00:01:57 The most serious concern with a forced arbitration proceeding is that it is conducted in private and deprives sexual harassment victims of their day in court and the right to receive a trial by jury. Arbitration proceedings are secret. Arbitration hearings lack utter transparency, accountability, and employers are able to shield unlawful and unfair practices from public view. Not only is that a problem as a matter of public policy, but practically and realistically it takes away the leverage an employee might have to get an employer to the settlement table for fear of making their grievances public. The employer has no obligation or incentive to be transparent and to make things right. The bill ends this default management practice once and for all, for all sexual assault and sexual harassment victims in the workplace. Forced arbitration perpetuated sexual harassment in the workplace. Forced arbitration facilitated the perpetuation of sexual assault and sexual harassment discrimination

Starting point is 00:02:57 by preventing victims from being heard in an open court and preventing their complaints and stories from being made public. In addition, because there is no verdict, the findings of a forced arbitration are private and confidential. There is no ability for future plaintiffs and their attorneys to uncover company-wide data to expose patterns and prior practices of sexual harassment discrimination. Employers were the winners of forced arbitration cases, but that has ended. Employers were the winners of forced arbitration cases, but that has ended. Employers were the clear winners in this unjust and unfair forced arbitration process. Up until now, forced arbitration resulted in favorable outcomes for employers in sexual harassment cases.

Starting point is 00:03:37 In fact, research shows that arbitrators were more likely to fine in favor of employers. Employees are 1.7 times more likely to win in federal courts than in arbitration proceedings, and 2.6 times more likely to win in state courts than in arbitration proceedings. In addition, forced arbitration settlements yield significantly lower damages for employees than in federal and state courts. Forced arbitration nonsense is stopped, at least in part, for both male and female employees. However, the practice still continues to be followed

Starting point is 00:04:11 in all other discrimination cases nationwide. For now, we should all relish in the sweet victory for employees. Our democracy does work, and this bill is a prime example. Thank you for listening to the Employee Survival Guide this week. I'll look forward to talking to you next week with another topic in the story. Stay tuned. Have a good week. Bye-bye.

Employee Survival Guide® - Congress Ends Forced Arbitration in Sexual Harassment Cases

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