Forced Arbitration Enables Billions in Wage Theft Each Year

A growing trend of “forced arbitration” is costing employees billions of dollars a year, a brief from the National Employment Law Project says.

The Washington Post, reporting on the brief, explains how it works. Traditionally, when an employee is denied overtime, forced to work off the clock or not paid minimum wage, she can sue. But employers who insist on forced-arbitration clauses in their employment contracts can require that employees resolve any disputes through mediation, which is far friendlier to employers than employees.

Data from Cornell University shows that employees win their mediation claims far less frequently than they do in court. In federal court, employees win 36.4 percent of the time, in state courts, 51

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