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What is FAIR? Forced Arbitration Injustice Repeal

November 6, 2020
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Many employees don’t realize that they don’t have the right to sue their bosses. This misunderstanding is often due to mandatory arbitration clauses that are often slipped – with zero fanfare – into employment contracts. Enter the Forced Arbitration Injustice Repeal Act (FAIR Act), which passed in the House in September 2019. The FAIR Act is an overarching bill that (if it passes in the Senate) will ban companies from making private arbitration a legal-dispute requirement for employees and consumers (such as credit card holders). If your employer’s negligence has injured you, don’t delay consulting with an experienced NYC personal injury attorney today.

More Common than You Think

These forced arbitration clauses are likely more common than you realize and frequently show up in employment and credit contracts (in what is known as the fine print and where they tend to go unnoticed by signees). Private arbitration – it’s important to note – is a non-judicial proceeding that is usually much less formal than going to court. Industries like education, health care, retail, and tech are frequent flyers when it comes to mandatory arbitration.

Powerful Effects

When employers include private arbitration requirements in their employment contracts (and it’s becoming more and more common), it prevents employees from suing for all the following serious matters:

  • Overtime violations and other forms of wage theft
  • Job discrimination
  • Sexual harassment
  • Racial discrimination

The fact is that employees are less likely to prevail at private arbitration, and when they do manage to win their cases, they typically receive far less compensation than they would have at court. In other words, it’s yet another way that the deck is stacked against employees and in favor of corporate America. If forced arbitration is ultimately outlawed, it would pave the way for employees who’ve suffered injustice on the job to seek legal justice and would stop employers from forcing employees to give up this important legal right in exchange for employment in the first place.

Mandatory Arbitration

Many consider mandatory private arbitration as a means of privatizing our judicial system – and in a manner that favors big business. Since 2017, employers have also been allowed to ban employees in arbitration from bringing class-action suits. Further, because arbitration is private, it allows employers to sweep serious employee disputes under the rug. All told, employers are highly motivated to retain the right to include terms related to mandatory arbitration in their employment contracts.

An Experienced New York City Personal Injury Attorney Can Help

If your employer’s (or anyone else’s) negligence leaves you injured, the dedicated personal injury attorneys at Lipsig, Shapey, Manus & Moverman in NYC are committed to skillfully pursuing just compensation that covers your full range of emotional, physical, and financial damages. We’ve been proudly serving New York City for more than 60 years, and we’re here for you, too. Your case matters, so please don’t hesitate tocontact or call us at 212-285-3300 for more information today.


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