In reaction to the “Silence Breakers,” a bipartisan group of lawmakers recently introduced legislation that would prohibit employers from including sexual harassment or gender discrimination claims in their arbitration agreements. Advocates say the bill, known as the Ending Forced Arbitration of Sexual Harassment Act, would allow victims of these types of acts to bring a cause of action in court and publicly address the situation.
It is estimated that more than half of all American workers are subject to mandatory arbitration clauses. Through such agreements, both sides agree to resolve a dispute out of court with the assistance of an independent arbitrator rather than by going to court. Companies consider it an effective and more streamlined dispute-resolution system that saves money.
