Employees Signing Away Right to Sue
By Kathy Chu The Associated Press
Published: Oct 16, 2003
NEW YORK (Dow Jones/AP) - Businesses are slowly adopting clauses requiring contract employees to sign away their right to sue, forcing disputes into arbitration instead.
So far, only a minority of corporations have adopted agreements that require workers to take disputes through a largely private arbitration process instead of into courtrooms. Yet it's a movement that has gained ground over the past decade.
"As more and more courts uphold this, companies may be feeling a greater comfort level that if they put a program in place, they won't have it overturned," said Marjorie Stein, a vice president at Cigna Corp. The Philadelphia company has required employees to abide by a dispute-resolution process, including "final and binding arbitration," since 1995.
In the past five years, the number of employees covered by workplace arbitration plans administered by the American Arbitration Association, the nation's largest arbitration firm, has more than doubled, to 7 million from 3 million. And employment disputes filed with the AAA have risen 38 percent, to 1,100 cases in 2002 from 800 in 1997. (snip/...)
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