What Banning Forced Arbitration for Harassment Means
Over the last decade, more than half of U.S. companies adopted a dispute-resolution process known as forced arbitration to settle worker grievances of all kinds behind closed doors as an alternative to litigating in court. Now, under pressure from the #MeToo movement, Congress has banned mandatory arbitration for workplace sexual harassment and assault claims. While this change is expected to give workers more leverage, activists are seeking a broader ban covering gender discrimination and other grievances.
Where it’s used, workers are usually required to agree in advance to arbitrate workplace disputes outside of court. Evidence is presented, and witnesses give their accounts just like in courthouse suits, but cases are decided by privately appointed arbitrators, who act as both judge and jury. Proceedings are conducted out of the public eye, and parties generally are required to keep the outcome secret.