Will Employers be able to make Employment Arbitrations Mandatory?

In 2015, the Ohio Supreme Court held that employers requiring employees to submit to arbitration — as opposed to filing a lawsuit — was illegal in Ohio. The Court, relying on premises of contract law, determined that such agreements were unconscionable and against public policy. That decision, however, skirts around the parameters of the Federal Arbitration Act (FAA) which preempts state statutory laws that preclude or limit arbitration involving interstate commerce.

Fast forward to today, some litigation in New York merits watching. In the case Whyte v. WeWork Cos., Whyte claims to have been the victim of race and sex bias at the hands of WeWork. New York has a law which prohibits mandatory arbitration of job discrimination and harassment claims. The trial court ruled that the FAA, which broadly favors arbitration, controlled over New York’s anti-arbitration law. Whyte is appealing and asking for a higher court to review.

While the legal nuances between New York’s statutory law and Ohio’s common law positions are not insignificant, this case merits watching as its final ruling may impact upon how employers can treat employees in Ohio.

To read more, click here.