Mandatory Arbitration Good for Workers, Businesses

WASHINGTON, D.C. – The United States Chamber of Commerce called today's 5-4 Supreme Court decision, that federal arbitration laws apply to most employment disputes, Circuit City Stores, Inc. v. Saint Clair Adams, good for business and good for workers.

"Arbitration avoids time-consuming and expensive lawsuits, without limiting a worker's right to a fair hearing," said Stephen Bokat, the Chamber's general counsel and Executive Vice President of the National Chamber Litigation Center – the legal arm of the U.S. Chamber. The Chamber participated as amicus curiae in the case.
Employment litigation in the courts, and in particular jury trials, is extremely expensive and takes a long time to resolve, according to the Chamber. Discovery – which is often limited in arbitration – and motions drive up the costs of attorneys, and the cost to employers in resolving these disputes. The Supreme Court made it clear that the decision does not limit the substantive rights of employees; it only determines the forum in which they are heard.

"Workers' rights and business interests can both be served through mandatory arbitration," said Bokat. "Binding arbitration ensures a fast, fair and complete hearing of employment contract disputes. The justices recognized the added benefit of easing the considerable burden on the U.S. court system in their decision."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

# # #

01-45