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Democrats in tune with Google on the ban on compulsory arbitration



Democratic members of Congress on Thursday introduced House and Senate bills that would ban US companies from enforcing binding arbitration clauses in employment, consumer rights, civil rights and antitrust laws.

A ban on binding arbitration clauses could hit US firms hard, especially large firms, which are more likely to require them as a condition of employment.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Act Repealing the Forced Arbitration of 2019, or "FAIR Act" is the latest in a long history of & nbsp;proposed bills& nbsp; who tried, unsuccessfully, to unclog the current & nbsp;statutory& nbsp; and & nbsp;short Supreme& nbsp; The framework retains the enforceability of mandatory arbitration clauses. "data-reactid =" 33 "> The Law Repealing the Forced Arbitration of 2019, or" FAIR Act ", is the latest in a long series of bills that have tried unsuccessfully to unravel the current legislative framework and that of the Supreme Court by maintaining the enforceability of mandatory arbitration clauses.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This time around the bills sponsored by Rep. Hank Johnson (D-Ga.) And Senator Richard Blumenthal (D-Conn.) Have the weight of those of Google (GOOG& nbsp;GOOGL) recent & nbsp;decision& nbsp; remove forced arbitration from its agreements with employees and subcontractors. One month of November & nbsp;Take a walk& nbsp; more than 20,000 Google employees have protested against the company's treatment of sexual harassment complaints, which has prompted the company to seriously re-evaluate its policy. "data-reactid =" 34 "> This time, the invoices sponsored by the representative Hank Johnson (D-Ga.) and Senator Richard Blumenthal (D-Conn.) bear the weight of the recent decision of Google (GOOG , GOOGL) to remove forced arbitration from its employee and direct subcontractor contracts More than 20,000 Google employees withdrew in November to protest the company's behavior more accusations of sexual harassment have prompted the company to seriously re-evaluate its policy.

"People should no longer be forced to suffer in silence, to suffer the injustice of this kind of rigged system, dispossessed of their rights and forced to appear before an unusual arbiter," said Blumenthal at the same time. a press conference Thursday.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Forced arbitration has become insidious to states States as they use the secret system to silence victims of sexual harassment, take advantage of workers and consumers and undermine the health and safety of the public, "the & nbsp;American Association for Justice, data-reactid = "36"> "Forced arbitration has become insidious in the United States as companies use the secret system to silence victims of sexual harassment, take advantage of workers and consumers, and undermine to the health and safety of the public, "said the American Association for Justice, a registered lobbying organization to defend bills aimed at bypassing mandatory arbitration clauses.

<p class = "canvas-canvas-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "More than half – 56.2% – on United States private sector non-union employees are subject to compulsory arbitration contracts, in accordance with a & nbsp;2017 study& nbsp; led by Alexander Colvin from the IRL School of Cornell University. "data-reactid =" 37 "> According to a study conducted in 2017, more than half of US private sector employees (56.2%) are subject to mandatory arbitration contracts led by Alexander Colvin's IRL School of Cornell University.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A & nbsp;2011 study, also led by Colvin, found that the average damages awarded in a compulsory labor arbitration amounted to $ 109,858, almost four times less than the awards for litigation in the field of employment. – $ 394,223 – in federal court. Colvin also found that the arbitration cases prescribed by the employer were resolved in favor of the employee in 21.4% of the cases, while the employees won their lawsuit at 36.4%. %. "Data-reactid =" 38 "> A 2011 study, also conducted by Colvin, Average damages awarded in the context of compulsory employment arbitration amounted to 109,858 dollars, nearly four times less than the settlement of a job dispute – $ 394,223 – in federal court.Colvin also found that the arbitration cases prescribed by the employer were resolved in favor of the rates for employees in court were 36.4%.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The organizers of Google, as well as former litigators forced to managing them Arbitration disputes were held in Washington to support the introduction of the bills, former Fox News presenter Gretchen Carlson, who successfully sued and settled a lawsuit.$ 20 million sexual harassment trial& nbsp; against the late founder and CEO of Fox News, Roger Ailes, collaborated with the representative Cheri Bustos (D-IL) on legislation. "data-reactid =" 39 "> Google organizers, as well as former litigators forced to settle disputes by arbitration Former Fox News presenter Gretchen Carlson, who successfully prosecuted and successfully pursued a lawsuit $ 20 million for sexual harassment against Fox News founder and CEO Roger Ailes worked with Representative Cheri Bustos (D-IL) on legislation.

"Forced arbitration clauses in employment contracts are not designed to achieve a fair, speedy and cost-effective resolution of sexual harassment cases," Carlson said in a statement to Yahoo Finance. "I believe that every woman and every man should have the right to see their demands decided in a courtroom rather than behind closed doors where victims can never talk about what happened."

Comparison of the results of the arbitration and the litigation in employment

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The use of arbitration clauses forced in employment contracts has steadily increased since the 1960s, when state laws and federal civil rights laws were passed & nbsp;extend protections& nbsp; to American workers. Forced arbitration clauses have been criticized for preventing workers from suing their employers in court, including for sexual harassment. "Data-reactid =" 61 "> The use of forced arbitration clauses in employment contracts has steadily increased since federal civil rights laws have begun to extend the protections afforded to American workers. 39, forced arbitration have been criticized for preventing workers from suing their employers in court, including for sexual harassment.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Americans with little choice in the market can yield without to know their rights when they enter into contracts to buy a home or mobile phone, to place a loved one in a retirement home or to start a new job, "said Rep. Johnson in a & nbsp;Publication on Facebook. "data-reactid =" 62 "> Americans with little choice in the market can unknowingly give up their rights, when they enter into a contract to buy a home or mobile phone, to place a loved one in a home to retire or to start a new job, "Rep. Johnson said in a Facebook post.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Clauses are also common in & nbsp;consumer service contracts& nbsp; for credit cards, & nbsp;public services, chequing and debit cards, as well as payday loans, private student loans and auto loans. "data-reactid =" 63 "> Clauses have also spread in consumer service contracts for credit cards, utilities, current and debit cards, as well as payday loans, loans private students and auto loans.


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