Menu Contact Practice Areas Menu
${site.data.firmName}${SEMFirmNameAlt}
Free Phone Consultations
877-389-7395
Hablamos EspaƱol

Employee arbitration mandates have limitations

It's becoming increasingly popular for employers to make signing an arbitration agreement mandatory for employees. By signing such agreements, employees often waive the right to file a complaint or lawsuit with a court or governing entity. Instead, employees must present complaints before a binding arbitration committee who makes a final decision in the case.

Employers are going to such agreements because it helps cut down on litigation costs and reduces the number of complaints made to certain government entities. However, arbitration agreements can't stop employees from making complaints or reports to certain agencies, including the Equal Employment Opportunity Commission.

While the EEOC doesn't file a lot of lawsuits compared to the number of complaints it gets annually, it does seek to protect an employee's ability to make those complaints. A recent report states that the EEOC has filed suit against Doherty Enterprises, which is a corporation managing chains such as Panera Bread. According to the complaint, the company has an arbitration agreement that does not include a carve-out for EEOC-related reports.

The lawsuit is still pending, but the court has ruled that the EEOC has standing to file the case, which could be a problem for other companies. Experts are advising companies to ensure mandatory arbitration agreements don't block employees from making reports to the EEOC.

When dealing with any type of employment dispute--or tool to manage those disputes--companies should seek experienced advice. It's important to deal with issues in a legal and timely way, but organizations must also understand the legal implications of actions for the future. Sometimes, a one-sized-fits-all approach isn't the best answer.

Source: Forbes, "Employers, Don't Forget The EEOC Carve-Out In Your Mandatory Arbitration Agreement," Richard Tuschman, Sep. 14, 2015

No Comments

Leave a comment
Comment Information
  • Super Lawyers
  •  The Florida Bar | Board Certified | Labor and Employment
  • American Bar Association | Defending Liberty Pursuing Justice
  • Best Lawyers | Linking Lawyers and Client Worldwide
Email Our Attorneys

We Are Ready To Help You

Please call our employment law offices at 305-375-9510 or fill out the form below to arrange a consultation.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

  • Facebook
  • Twitter
  • Linkedin
  • Google Plus