5 min read

Arbitration Agreements

Most workers signed away their right to a jury trial before their first day of work — buried in an onboarding packet.

What an arbitration agreement does

An arbitration agreement requires you to resolve legal disputes with your employer through a private arbitrator instead of the court system. That means no jury, limited discovery, and a decision by someone the employer often has a long-standing relationship with. Awards tend to be lower than jury verdicts, and the process is largely confidential.

When you signed it

Most arbitration agreements are signed during onboarding — mixed in with tax forms, direct deposit authorizations, and handbooks. Many workers don't remember signing one. Checking your onboarding documents now, before something happens, is worthwhile.

What they cover — and what they don't

Arbitration agreements typically cover discrimination, harassment, retaliation, and wage claims. They do not eliminate your right to file a charge with the EEOC. Federal law also currently prohibits mandatory arbitration of sexual harassment and assault claims under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (2022).

Can you challenge one?

Sometimes. Courts have thrown out arbitration agreements that are unconscionable, lack mutuality, or were imposed under duress. An employment attorney can evaluate whether yours is enforceable.

Red flags to watch for

Agreement requires you to waive class action rights (common and significant)
Employer controls selection of the arbitrator
You were required to sign to keep your job, with no real opportunity to negotiate
Agreement attempts to cover sexual harassment claims (may be unenforceable under 2022 federal law)
No copy of the agreement was provided to you after signing

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Equal Pay & Pay Discrimination