On Thursday, March 3, President Biden signed the Ending Forced Arbitration act into law. At the signing, the president called it a “momentous day for justice and fairness in the workplace.”
. “Everyone deserves the right to be heard, to have choices and to be free from mechanisms that silence their voices.”
“What we know about mandatory arbitration is that it favors employers,” said civil rights attorney Debra Katz. “All the research shows that employers get a better shake when they go to a confidential system of mandatory arbitration where there is no record and no public transparency.” In addition to voiding mandatory arbitration clauses, the new law also voids collective action waiver clauses that forfeit employees’ rights to join together in class-action lawsuits. These clauses, which employers require employees to agree to, effectively prevent them from proving the pervasive nature of the workplace harassment. mandatory arbitration and collective action waiver clauses as enforceable.
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