American Association for Justice Issues Call for Action to End Forced Arbitration

American Association for Justice Calls For Action to End Forced Arbitration

The Chief Operating Officer of the  American Association for Justice (AAJ) recently penned a letter to the public in an attempt to provide people with the latest information on how to get involved in the AAJ’s grassroots efforts to end forced arbitration. [Read more…]

American Association for Justice Releases Detailed Report on Negative Impacts of Forced Arbitration

American Association for Justice Releases Detailed Report on Negative Impacts of Forced Arbitration

An article published in the November 2019 issue of the American Association for Justice’s Trial Magazine highlights a new research report examining the devastating impact forced arbitration has had on the rights of American workers and consumers. The report looks at how forced arbitration suppresses claims against corporations specifically when corporations harm workers and consumers by cheating, stealing, or even breaking the law. [Read more…]

Lawmakers Advance FAIR Act Bill Aimed at Eliminating Forced Arbitration in Employment Contracts

Lawmakers Pass FAIR Act Bill Aimed at Eliminating Forced Arbitration in Employment Contracts

On Tuesday, September 10, 2019, House Democrats voted overwhelmingly to send the FAIR Act (a bill to end forced arbitration) to the House floor for a vote. The vote on the bill is expected to take place as early as next week. [Read more…]

Google Employees Push for Legislation to End Forced Arbitration in Employment Contracts

Google employees are organizing a phone drive that will take place on Wednesday, May 1st to press lawmakers into supporting The Forced Arbitration Injustice Repeal (“FAIR”) Act. The FAIR Act is an initiative recently reintroduced in the House of Representatives seeking to end the use of arbitration agreements in employment contracts so as to sidestep public trials. Widely used across many industries, these clauses are inserted into workers’ contracts more and more frequently to require that the workers waive their right to sue their employers in a real and public court. Instead, employee complaints are funneled into a private legal system, where employers (who fund the system) are viewed as having the upper hand in the settling of job-related disputes. [Read more…]

American Association for Justice Releases Video in Support of FAIR Act Aimed at Eliminating Forced Arbitration in Employment Contracts

American Association for Justice Releases Video in Support of FAIR Act

Early this year, democratic lawmakers announced a new bill aimed at ending the practice of forced arbitration in employment contracts. The Forced Arbitration Injustice Repeal (“FAIR”) Act seeks to end the use of mandatory arbitration clauses, which are often inserted into workers’ contracts to require that they waive their right to sue their employers in a real court. With their right to sue waived, employees complaints instead are directed to a private system funded by employers where employers are seen to gain the upper hand in job-related disputes. [Read more…]

Lawmakers Announce New ‘FAIR Act’ Bill to End Forced Arbitration

Lawmakers Announce New ‘Fair Act’ Bill to End Forced Arbitration

Democratic lawmakers today announced a new bill aimed at ending the practice of forced arbitration in employment contracts. The Forced Arbitration Injustice Repeal, or FAIR Act, seeks to end the use of mandatory arbitration clauses, which are often inserted into workers contracts to require that employees waive their right to sue their employers. With the right to sue waived, employee complaints instead can only go through a private system where employers are automatically given the upper hand in disputes. [Read more…]

Supreme Court Set to Review Mandatory Arbitration in the Employment Context

construction workers

Court will rule on cases involving workers’ rights to sue their employers in court

As reported by the Wall Street Journal the U.S. Supreme Court is slated to make rulings in three cases that involve workers’ rights to sue their employers. The fundamental question is whether employment contracts can allow employers to force workers to bargain away their rights to sue in court over employment disputes. [Read more…]

The Intercept: Will Shareholders Lose the Right to Sue Over Corporate Fraud?

Securities and financial fraud

In partnership with the Investigative Fund, The Intercept has published a powerful piece calling attention to proposed changes to the securities laws that may keep shareholders from being able to sue corporations that violate the law to shareholders’ detriment. The right to a trial may be replaced with mandatory arbitration agreements that will shunt shareholder lawsuits into private, closed-door arbitration funded by the very corporations alleged to have committed the fraud. [Read more…]

Mandatory Arbitration Clauses Should Be Banned From Insurance Policies

Mandatory Arbitration Clauses Should Be Banned From Insurance Policies

Formal amendment to the Model Unfair Trade Practices Act seeks to prohibit pre-dispute forced arbitration provisions

According to Insurance Business America, pretty much everyone except big business hates forced dispute arbitration, a diversion of adjudication from open courts to closed, one-sided panels that has been shoved down the throats of consumers across nearly every industry. “Over the last 10 to 15 years, the practice of requiring individuals to agree to arbitrate rather than litigate any future disputes (or forgo the product, service or employment altogether) has been heavily criticized by government agencies, the media, academics and consumer groups.” [Read more…]

Wells Fargo Scandal Drives California to Block Mandatory Arbitration Clauses in Banking Contracts

data breach credit cards consumer fraud

In direct response to Wells Fargo’s vast false accounts fraud scheme affecting millions of bank customers, the California legislature has passed a bill “aimed at stopping banks from using arbitration clauses to shield themselves from lawsuits over sham accounts,” as reported by the Los Angeles Times. The California Assembly passed Senate Bill 33 earlier this week, and the California Senate quickly approved. The Bill’s fate now rests with Governor Brown. [Read more…]

Consumers Overwhelmingly Want Access to Legal System Currently Denied by Major Banks

Bank Misconduct

A 2016 study by The Pew Charitable Trusts notes that consumer disputes with banks over fees and policies are on the rise. Of particular concern are mandatory arbitration clauses found in 90% of bank account agreements. These forced arbitration provisions steer consumers to third-party decision-makers whose decisions are usually binding, giving the consumer limited or no opportunity to appeal. Such provisions also prohibit consumer bank customers from seeking any remedy in an impartial court of law. [Read more…]

Judge Rakoff Calls Consumer “Consent” to Online Arbitration Agreements a Legal Fiction

Scales of Justice in courtroom

In a court ruling regarding alleged Uber price-fixing, U.S. District Judge Jed Rakoff states in no uncertain terms that when it comes to online arbitration agreements, consumer consent is nothing more than a “legal fiction.” [Read more…]