How forced arbitration is hurting workers

City Lab -  [Forced arbitration clauses] require employees (and consumers) to waive their rights to class-action lawsuits. Such contracts are becoming increasingly ubiquitous: According to a new report from the Center for Popular Democracy, Economic Policy Institute, and National Employment Law Project, forced arbitration will apply to more than 80 percent of the non-union private-sector workforce by 2024.

“The right to be paid a livable minimum wage, to take meal and rest breaks, to safe workplaces, and to equal earning and promotion opportunities regardless of race, gender, ethnicity, or other social category—all of these important rights are at risk of being hollowed out by underenforcement,” the report reads.

Forced arbitration also represents a kind of corporate preemption of local and state law. From Albuquerque to Tacoma, more than 40 cities and counties have passed a higher minimum wage than state law requires. Some two dozen municipalities have local paid sick leave laws on the books. And in at least a dozen cities and counties, worker protections cover “safe” days—paid time off for victims of domestic violence. Ninety-eight percent of workers abandon their claims when their only option is arbitration....

... Wage theft is a pervasive problem for the entire economy. In the 10 most populous states, some 2.4 million workers lose $8 billion every year to minimum wage violations.

There are two forces eroding the enforcement of these workplace rights. One is austerity:... The other threat to enforcement is forced arbitration. Last year, the Supreme Court affirmed in Epic Systems v. Lewis that companies can require workers to resolve disputes through binding arbitration. Since then, the court has ruled that corporations can require employees to contractually waive their right to class arbitration. Chief Justice John Roberts has steadily ruled for the rights of corporations, and against plaintiffs.

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