Employers – and, in particular, car dealerships – have relied on binding arbitration agreements to resolve employment disputes for decades. Arbitration offers a confidential setting in which businesses can efficiently litigate delicate personnel matters, or so the thought went. But several developments in the last year may prompt certain your dealership to revisit your employment arbitration agreements.
The End of Mandatory Arbitration of Sexual Harassment Claims
Many employers adopted binding arbitration agreements specifically to resolve claims of sexual harassment. The arbitration setting kept lurid details of alleged sexual misconduct off the public docket, allowing both the accuser and the accused to maintain some sense of privacy over highly sensitive personal matters.
