19. I have just been offered a new job and I noticed a forced arbitration agreement in the documents I had to sign. Do you want me to sign? This case is not an anomaly. Rather, it reflects existing arbitration law and illustrates the difficulties ordinary workers face in trying to enforce their legal labour rights. Below we present the applicable arbitration law and then present data on the extent of the use of arbitration and the impact of arbitration on the ability of workers and consumers to assert their rights. Over the years, employers have become adept at hiding these agreements. We often find them stuffed in another agreement, for example.B. Bound by a confidentiality agreement, or in the employee manual – you are requested to sign that you have received the manual, but the signature also attempts to deceive the arbitration agreement. In California, there was a ruling that the arbitration agreement cannot be hidden, so employers just started putting this section in bold.
Prima Paint and its offspring allow a court to draw a potentially invalid arbitration agreement from a potentially invalid contract. Today, the court is adding a new layer of separability — something like the Russian Nesting dolls — into the mix: courts can now wrest even stricter provisions from a potentially invalid arbitration agreement referring some arbitration disputes to an arbitrator [highlighted in the original]. Carefully write down any conversations you have with your employer about changing or not signing the agreement. Then, in 1984, to Southland Corp. v. Keating, 465 U.S. 1 (1984), the High Court rejected the view that the FAA applied only to cases in federal courts. On the contrary, the Court decided that the FAA would also apply to contract disputes in state courts as long as the dispute concerned intergovernmental commerce. The Southland decision was a substantial extension of the scope of the Statute.
In addition, despite direct evidence in the FAA`s legislative history and despite the language of SECTION 2 of the FAA, which has maintained the role of state law in regulating arbitration, the majority of the Supreme Court has ruled that the statute anticipates all state laws with which it conflicts. Thereafter, all efforts by the state to regulate arbitration would be retained by the FAA.7 How many employees are subject to mandatory arbitration? This is a surprisingly difficult question to answer, in part because of the private nature of these arbitrations. There is no requirement for employers who ask their employees to sign binding arbitration agreements to report it to a government agency such as the Bureau of Labor Statistics (BLS). . . .