When Gretchen Carlson, the former host of “Fox & Friends,” accused Fox News CEO Roger Ailes of sexual harassment, she wasn’t legally able to sue Fox News. A mandatory arbitration clause that she signed in her contract with the company prohibited her from taking her employer to court. The agreement required her to negotiate her complaint in confidential proceedings. So instead she sued Ailes personally—for $20 million.
Of all the hidden legal craft tucked into the fine print today, forced arbitration agreements may do the greatest harm to the largest number of Americans. These binding clauses, buried deep in the arcana of terms-of-service documents and employment contracts, lock millions of workers and consumers out of the courtroom.
