Lost in a news cycle filled with Covid-19, Ukraine, and a former president flushing top-secret papers down the toilet was a small piece of news that could have big consequences in employment law. The United States Senate passed a House bill to end forced arbitration of sexual harassment cases. President Biden is expected to sign the bill into law.
Why is it Such a Big Deal to End Forced Arbitration of Sexual Harassment Cases?
Because arbitration allows companies to play hardball against victims. Arbitration is a process where a case is heard by one person. That person, the arbitrator, is judge, jury, and appellate court. Mistakes do not get fixed. The process is private, so the media cannot watch and decisions remain private.
Not only that, but a majority of arbitrators are, or have been, corporate attorneys, representing corporations in such cases. Why is that? Not sure. But employee-side attorneys don’t tend to join arbitration panels. Prosecutors and criminal defense attorneys do not either (but many become judges). That leaves corporate lawyers, who view service as an arbitrator (correctly) as a feather in their cap and a public service.
Bias in the System of Arbitration
Arbitrators try to reach the correct decision, but we all have biases and theirs too often comes from their corporate backgrounds. So, decisions tend to favor companies, cannot be corrected on appeal, and are hidden from public view.
Mandatory Arbitration Clauses for Employees
But no longer. Sixty million employees in the United States are subject to mandatory arbitration agreements, which employers require them to sign as a condition of employment.
Now, at least in sexual harassment and assault cases, those will not hold water. Employers who used to play hardball in settlement negotiations, knowing that at worst they would face is an arbitration award, will now need to open their wallets further to avoid jury trials.
Impact on Sexual Harassment in the Workplace
Bringing cases out in the open also means we can build a public record of them. Right now, there is no way to know how many claims have been filed against a company, because the arbitration records are private. Court cases, however, not only are public, but are often available on the internet for all to see. This should force companies to do what they should have done more often in the past – train employees not to harass co-workers, and support victims who come forward.
Sexual Harassment Settlement Fairfax VA
Sexual harassment is wrong. This new law will cause companies to take the law more seriously and create better workplaces for all employees.
If you or a loved one is dealing with unwanted attention and considering pursuing a sexual harassment settlement in Fairfax or Northern Virginia, it is crucial to speak to an attorney immediately about your case. Contact Cook Craig & Francuzenko to learn more.
