Arbitration in Action – How it Can Affect Employees

Posted on Jul 25, 2016 By Ron Sykstus

Attorney Ron SykstusI have written extensively regarding binding mandatory arbitration.  It is a contractual mechanism used to limit judge and jury trial rights which are fundamental in our country.

Real World Example of Arbitration

Needless to say, I am not a fan of arbitration.  In a real world example, arbitration has taken center stage in a sexual harassment lawsuit filed by reporter Gretchen Carlson against Roger Ailes of Fox News. This Washington Post article is a primer for everything you ever wanted to know about arbitration and it explores many of the nuanced angles of this case in depth. Additionally, a New York Times article noted a complicating factor about how the arbitration clause that is being invoked in this case contained a confidentiality clause which could shroud this case in secrecy.

Here is the arbitration clause that was used in this contract:

arbitration-clause

My advice is to do your best to always try to avoid signing a contract that contains binding mandatory arbitration.   This article is Exhibit A as to why arbitration in any type of contract should be avoided at all costs.