4 ms·
I wrote more about this sort of thing here: https://news.ycombinator.com/item?id=37278222 https://news.ycombinator.com/item?id=37278222 and urge anyone who thin
by eadler 3y ago
I wrote more about this sort of thing here: https://news.ycombinator.com/item?id=37278222 https://news.ycombinator.com/item?id=37278222 and urge anyone who thinks arbitration is 'fair' to read https://www.epi.org/publication/the-arbitration-epidemic/ https://www.epi.org/publication/the-arbitration-epidemic/
Some highlights
- Employee win rates in mandatory arbitration are much lower than in either federal court or state court, with employees in mandatory arbitration winning only just about a fifth of the time (21.4 percent), which is 59 percent as often as in the federal courts and only 38 percent as often as in state courts
- Differences in damages awarded are even greater, with the median or typical award in mandatory arbitration being only 21 percent of the median award in the federal courts and 43 percent of the median award in the state courts
- average outcome in mandatory arbitration is only 16 percent of that in the federal courts and 7 percent of that in state courts
- The mandatory arbitration–litigation gap in outcomes has a direct effect on the ability of individual workers to recover compensation for the injuries they have suffered.
- ""The fact that it is not worth the expense involved in proving a statutory remedy does not constitute the elimination of the right to pursue that remedy.""
While this relates to employee vs employer arbitration - similar effects apply to consumer arbitration.
mandatory arbitration and class-action waivers are two of the most pernicious terms allowed in modern contracts of adhesion and must be fixed.