In a decision reached earlier this month, the Second District Court of Appeals held that an employee's racial discrimination and sexual harassment claims (among others) have to be arbitrated as opposed to being tried before a judge and jury. In that case, a female employee of Mexican ancestry, Maribel Baltazar, working for Forever 21, claimed she was sexually harassed and subjected to discrimination because of her race and sex. At the time she filled out her job application, she was presented with an "Agreement to Arbitrate" which she initially refused to sign. Such an agreement effectively waives an employee's right to a jury trial for any claim arising from the employment. After several employees of Forever 21 considered her refusal during the application process, Baltazar was finally told she must "sign it or no job." She signed and after working for nearly four years with the company, Baltazar finally felt compelled to leave because of harassment and discrimination, and she quit. The company and the individual employees named in the lawsuit brought a motion to compel based on the arbitration agreement. In spite of the fact the trial court had ruled in Baltazar's favor, the appellate court decided the agreement was not "unconscionable" under the law and was therefore enforceable.
What this recent case demonstrates, once again, is the predisposition of the courts to order even claims involving fundamental rights (guaranteed by multiple statutes) to arbitration. Generally, the arbitration process tends to favor employers in as much as getting the case to arbitration can be much slower than a trial, and it is generally kept from the public's view, where a company's discriminatory conduct can remain hidden. Additionally, many trial attorneys feel the arbitration process may result in lower awards to the injured party. On the other hand, some lawyers believe arbitrators are often more fair-minded and cannot be moved by passion or prejudice, when compared to a jury. Arbitrators tend to be experienced lawyers and retired judges.
As a prospective employee, when you sign an arbitration agreement with the potential employer, you should be mindful of the fact you are thereby waiving your right to a jury trial if your employer treats you unlawfully. Your case will instead be decided by an arbitrator or panel of arbitrators who may not identify as readily with your side of the case. Additionally, some feel that the threat of a public lawsuit often moves a large company to resolve meritorious claims, something that may be absent when the case is sent to arbitration. Public records are generally not kept of arbitration outcomes and what information is available is not readily accessible to the public at large. In spite of the potential pitfalls of arbitration, an employment law attorney can be of assistance in evaluating the merit of a wrongful termination claim.
What this recent case demonstrates, once again, is the predisposition of the courts to order even claims involving fundamental rights (guaranteed by multiple statutes) to arbitration. Generally, the arbitration process tends to favor employers in as much as getting the case to arbitration can be much slower than a trial, and it is generally kept from the public's view, where a company's discriminatory conduct can remain hidden. Additionally, many trial attorneys feel the arbitration process may result in lower awards to the injured party. On the other hand, some lawyers believe arbitrators are often more fair-minded and cannot be moved by passion or prejudice, when compared to a jury. Arbitrators tend to be experienced lawyers and retired judges.
As a prospective employee, when you sign an arbitration agreement with the potential employer, you should be mindful of the fact you are thereby waiving your right to a jury trial if your employer treats you unlawfully. Your case will instead be decided by an arbitrator or panel of arbitrators who may not identify as readily with your side of the case. Additionally, some feel that the threat of a public lawsuit often moves a large company to resolve meritorious claims, something that may be absent when the case is sent to arbitration. Public records are generally not kept of arbitration outcomes and what information is available is not readily accessible to the public at large. In spite of the potential pitfalls of arbitration, an employment law attorney can be of assistance in evaluating the merit of a wrongful termination claim.