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December 4, 2009

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Arbitration upheld

Wednesday, March 21, 2001 | 10:48 a.m.

WASHINGTON -- Employers can force workers to take job-related disputes to arbitration rather than to court, the Supreme Court ruled today in a decision that will have broad effects on American workplaces.

Agreements to arbitrate workplace disputes are enforceable even if the employer required the worker to sign the agreement in order to be hired, the court said. Ruling 5-4 for Circuit City Stores, the justices said a gay former employee cannot sue over alleged harassment at work.

Arbitration has increasingly been used to resolve a wide variety of disputes including employment discrimination claims. Supporters of arbitration say it is less complicated and less expensive than a lawsuit.

But employees' advocates say the process can be tilted toward employers and that workers forfeit certain rights. Appeals often are limited, damages can be capped and fact-finding can be restricted.

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