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Update: New Ruling on Arbitration
Nan Knight
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The Supreme Court ruled on January 15, 2002 that
the Equal Employment Opportunity Commission (EEOC)
may sue an employer for alleged violations of an
employee's civil rights, even when that employee
has signed an agreement to submit job disputes to
arbitration.
The court held that although recent federal laws
have encouraged arbitration as an alternative
to litigation, this does not in any way undercut
the EEOC's authority and obligation to represent
employees in cases of job discrimination or bias.
The ruling was encouraging to supporters of employees'
rights. Only a year ago, the same court ruled
that in signing an arbitration agreement, an employee
was essentially waiving the right to sue his or
her company in court. At least now, say some observers,
the EEOC may be able to bring suit on that person's
behalf. Under the terms of the ruling, the EEOC
will be able to seek punitive damage and back
pay for workers, regardless of the terms of any
arbitration agreements signed.
The bottom line is still to be careful about
what you sign. But if you're already working under
an arbitration agreement and believe your rights
are being infringed, the EEOC's help may be the
hidden loophole you need.
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