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Employers Often Use Arbitration Agreements In Overtime Pay Lawsuits

WASHINGTON D.C — Many employers require employees to sign arbitration agreements in which they give up their right to sue in court over job-related issues, including unpaid wages. An employee who signs an arbitration agreement promises to pursue any legal claims against the employer through arbitration, rather than through a lawsuit. It might not sound like a big deal when you’re just starting a new job and don’t see any legal disputes on the horizon. But if your rights to proper compensation are later violated, that arbitration agreement might come back to haunt you. It could even mean the difference between winning or losing your case.

Courts will generally enforce arbitration agreements that are consistent with the law and properly obtained by an employer.  However, courts often find an employer’s arbitration agreement to be unenforceable for various reasons, including coercion, unfairness based on the superior bargaining position of the employer, limitations within the agreement regarding discovery, the presence of a confidentiality provision, the use of cost-sharing provisions, and the degree to which the employer retains the right to unilaterally modify the agreement.

Your chance of winning a favorable result at arbitrations is less likely than if you were allowed to proceed in court and have your case heard by a jury of your peers.  Employers are well aware of that fact and will do everything to prevent your access to the courtroom.  Don’t allow your employer to eliminate your right to enforce wage and hour laws in a court of law.  If your employer is requiring you to sign an arbitration agreement, or if you have already signed an arbitration agreement, contact our overtime pay lawyers to discuss your options.

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