U.S. Chamber of Commerce in Washington, D.C. Photo by Diego M. Radzinschi/ALM
A state law restricting arbitration agreements in employment contracts in the wake of the #MeToo movement is facing a challenge in federal court.
The U.S. Chamber of Commerce and the New Jersey Civil Justice Institute claim in their suit that the Federal Arbitration Act preempts N.J.S.A. 10:5-12.7, which was signed into law in March. The New Jersey law deems unenforceable any employment contract “that waives any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment,” and also provides that “no right or remedy under the Law Against Discrimination or any other statute or case law may be prospectively waived.”
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