A Hot Issue Reaches The High Court

As lawyers prepared to argue before the U.S. Supreme Court today over the legality of mandatory arbitration clauses in employment contracts, a new study came out that underscores what’s at stake, estimating that more than 60 million workers are now covered by them.

The Economic Policy Institute, which says its mission is “to inform and empower individuals to seek solutions that ensure broadly shared prosperity and opportunity” carefully timed the release of results to come as before a widely-watched case reaches the high court.

The case is actually three cases involving different employers: Epic Systems Corp., a Wisconsin-based maker of software for health care systems and medical groups, Ernst &Young U.S. and Arkansas-based Murphy Oil USA Inc. All invoked arbitration clauses in disputes with individual workers over overtime and other issues.

The Supreme Court like will take months to decide the issue. And employers will be watching carefully.

To  gauge the potential impact of that ruling, the Economic Policy Institute surveyed 627 private employers with 50 workers or more nationwide, focusing questions on their nonunion workers. Author of the study was Alexander J.S. Colvin., a professor at Cornell University’s ILR School.

Based on this sample, researchers estimate 53.9 percent of private employers require workers to sign arbitration clauses. Researchers estimate 60.1 million U.S. workers are subject to mandatory arbitration with waiver of class-action rights. The practice appears to be more common in large businesses, the study said.

 

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