Have you signed an arbitration agreement with your employer?
If you have, you didn’t negotiate it. The agreement requires you to go to
arbitration, and waive your right to sue in court, over employment matters. The
contract likely has a class-action waiver, too. That means if you and others
have similar complaints, you can’t bundle them—like you can in court (if the
court approves).
Why would you want a class action option? Trials often cost
more than $50,000 in attorney’s fees.
But if your claim is bundled, attorneys are more likely to
sue in your behalf. Often, they do this on a contingency fee basis. If you
lose, they get nothing. If you win, they get 30% plus costs. That comes out of
your “win” (judgment or settlement).
Three federal appeals courts have ruled on the validity of
these mandatory class action waivers. Two say these agreements cannot be
enforced. One says it can. The Supreme Court will decide this issue.
Picture Credit: Kentucky Law Journal
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