When an Employment Arbitration Agreement Is in Place Who May Still Sue

When an Employment Arbitration Agreement is in Place – Who May Still Sue?

Employment arbitration agreements have become increasingly common in the United States. Essentially, these agreements require employees to settle any disputes or claims they have against their employers through arbitration, rather than through the legal system. While some may view these agreements as a way to avoid lengthy and expensive litigation, they can also raise questions about an employee’s ability to seek legal recourse if they feel their rights have been violated. So, when an employment arbitration agreement is in place, who may still sue?

First, it’s important to understand what an employment arbitration agreement is. Typically, these agreements are signed by both the employer and employee, and they require that any disputes or claims related to the employee’s employment or termination be resolved through arbitration rather than through the courts. The idea behind these agreements is that arbitration can be a quicker and less expensive way to resolve disputes.

However, it’s important to note that not all legal claims can be arbitrated. For example, claims based on federal anti-discrimination laws, such as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act, are typically not subject to arbitration. This means that employees who believe they have been discriminated against on the basis of their race, sex, religion, age, or disability may still be able to file a lawsuit in court, even if they have signed an employment arbitration agreement.

Similarly, claims related to violations of workers’ compensation laws, whistleblower protections, or wage and hour laws may also be exempt from arbitration. These laws typically provide important protections for employees, and courts may be reluctant to allow employers to avoid liability for violations by using arbitration agreements.

In addition, it’s worth noting that even if an employee signs an employment arbitration agreement, they may still be able to sue if the agreement is found to be unenforceable. For example, if the agreement is found to be unconscionable, meaning that it is so one-sided as to be unfair, a court may refuse to enforce it. Similarly, if the agreement was signed under duress or coercion, it may be unenforceable.

Finally, it’s important to remember that even if an employee is required to go through arbitration, they may still be able to obtain relief through that process. While arbitration may be less formal and less costly than a court proceeding, it can still result in a binding decision that provides the employee with compensation or other remedies.

In conclusion, while employment arbitration agreements can limit an employee’s ability to sue their employer, there are still many situations in which an employee may be able to seek legal recourse. Employees who believe they have been the victim of discrimination, harassment, or other violations of their rights should not hesitate to consult with an attorney to determine their options. Meanwhile, employers who wish to use these agreements should review them carefully to ensure that they are enforceable and do not violate any legal requirements.