Wednesday, February 16, 2022

Forced arbitration is evil

There are proposed legislative remedies noted in the article, but they probably won't happen soon.
If anything, 26% is a very conservative estimate of wage theft among low-wage workers subject to forced arbitration. We believe the percentage is likely even higher, due to the lack of compliance incentive for these employers as a result of their decision to impose forced arbitration on their workers.

The claim-suppressive effect of forced arbitration was detailed in Cynthia Estlund’s pathbreaking 2018 article, The Black Hole of Mandatory Arbitration. Estlund found that, faced with the prospect of having to submit their claims to forced arbitration, the vast majority of workers—98%—never file a claim at all. With no effective access to justice, workers simply abandon their claims. - NELP

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