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In a special report, the NY Times explains how forced arbitration has resulted in a privatization of the justice system where "rules tend to favor businesses, and judges and juries have been replaced by arbitrators who commonly consider the companies their clients."
As the article explains, companies have inserted arbitration clauses in contracts in order to deprive tens of millions of individuals, employees, and consumers their day in court. Arbitrators decide what evidence the parties can offer, and how much a company is required to disclose. Unlike court proceedings, decisions by an arbitrator are almost impossible to appeal. As the Times explains, the arbitrators - - who are paid substantial fees - - have a built-in incentive to decide matters favorably for companies who are more likely to be repeat customers. More than three dozen arbitrators interviewed by the Times confirmed that they "felt beholden to companies. Beneath every decision, the arbitrators said, was the threat of losing business."
The current system of forced arbitration favors large companies to the detriment of individuals, employees, and consumers who are often not even aware that they are signing away their rights to a day in court, and it is is need of reform. Companies have taken advantage of forced arbitration provisions to deprive employees of their right to have claims decided in court, including whistleblower claims, retaliation claims, discrimination claims, wrongful discharge claims, unpaid wage and overtime claims, as well as others. Proposals like the Arbitration Fairness Act of 2015 are needed to level the playing field.
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