The EEOC has rescinded its 1997 Policy Statement on Mandatory Binding Arbitration of Employment Discrimination Disputes as a Condition of Employment (the “Policy Statement”), which set forth the Commission’s position that agreements requiring mandatory arbitration of discrimination claims as a condition of employment are contrary to the principles of the federal employment discrimination statutes.

In a statement published on the EEOC’s website, the Commission noted that the Policy Statement conflicts with numerous post-1997 Supreme Court decisions ruling that agreements to arbitrate employment-related disputes are enforceable under the Federal Arbitration Act.  Therefore, the Commission said, the Policy Statement “does not reflect current law” and “should not be relied upon by EEOC staff in investigations or litigations.”  The EEOC’s statement further stated that the rescission should not be construed to “limit the ability of the Commission or any other party to challenge the enforceability of a particular arbitration agreement.”  (emphasis added.)

While it is too soon to know what practical effects this change will have on EEOC operations, the decision to rescind the Policy Statement at least appears to bring the Commission’s position on enforceability of arbitration agreements in line with the past two decades of Supreme Court precedent.

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Photo of Allison Martin Allison Martin

Allison Martin is a senior counsel in the Labor & Employment Law Department. Allison represents employers in a wide range of employment litigation matters, including employment discrimination and harassment lawsuits arising under Title VII and similar state and local statutes, retaliation claims, and…

Allison Martin is a senior counsel in the Labor & Employment Law Department. Allison represents employers in a wide range of employment litigation matters, including employment discrimination and harassment lawsuits arising under Title VII and similar state and local statutes, retaliation claims, and wage-and-hour claims. She represents employers in federal and state courts, arbitration tribunals, and before the EEOC and the New York City Commission on Human Rights. Allison has extensive experience litigating both single plaintiff and class action lawsuits.

Allison also counsels clients on a broad range of employment law matters, including investigations, employment policies and procedures, and employee terminations and discipline. She also has experience conducting high-profile internal investigations on behalf of employers.

Allison previously served as a federal law clerk in the U.S. District Court for the Southern District of New York.

At Seton Hall University School of Law, Allison was an Articles Editor for the Seton Hall Law Review. Allison also  interned for Chief Judge Garrett E. Brown (Ret.) of the U.S. District Court for the District of New Jersey while in law school.

Photo of Steven Hurd Steven Hurd

Steve has extensive trial and appellate experience, in both federal and state courts focusing on claims of alleged individual and class discrimination, sexual harassment, wage and hour violations, FINRA, whistleblowing and retaliation, defamation, fraud, breach of contract, wrongful discharge and other statutory and…

Steve has extensive trial and appellate experience, in both federal and state courts focusing on claims of alleged individual and class discrimination, sexual harassment, wage and hour violations, FINRA, whistleblowing and retaliation, defamation, fraud, breach of contract, wrongful discharge and other statutory and common law claims. Steve also advises clients on employment litigation avoidance, litigation strategy and alternative forms of dispute resolution. Steve also handles matters involving drafting, enforcing, and defending restrictive covenants, and protecting trade secrets.

Steve is a partner in the Labor & Employment Law Department and co-head of the Employment Litigation & Arbitration Practice Group and Media & Entertainment Industry Group, and is a member of the Restrictive Covenants, Trade Secrets & Unfair Competition Group.

Steve helps his clients stay in compliance with the ever-changing employment regulations with respect to FLSA and state law wage and hour requirements by providing advice and conducting comprehensive audits. Steve conducts investigations pertaining to reductions-in-force and individual employee terminations, and claims of gender, race, national origin, and disability discrimination.