Victims Silenced by Loopholes in Workplace Harassment

November 16, 2018

 

Thousands of employers across the nation are sneaking a loophole into employment contracts called “forced,” “binding” or “mandatory arbitration.” This fine print prevents employees from suing companies in court for discrimination, sexual harassment and even assault, then prohibits victims from speaking publicly about their ordeals. Meanwhile, the federal government looks the other way .

 

Major revelations of  sexual harassment in the workplace  have started a long-overdue movement to protect all workers, but most often women, from a long history of abuse. You would think our major corporations would be taking the lead in stamping out these injustices. Instead, way too many are actually doing the opposite by writing “forced arbitration” clauses into employment contracts that prevent an employee from taking action in court. Instead, harassment disputes are forced into closed arbitrations that almost always favor the company and hide the outcome from the public. This has to stop!

 

A study by the  Equal Employment Opportunity Commission estimates  that anywhere from 25 percent to 85 percent of women report having experienced sexual harassment in the workplace. The number fluctuates because the Commission says 75 percent of abuse incidents go unreported. Many employees fear retaliation if they speak out, including the loss of their jobs. The Commission also points out that forced arbitration weakens “an employer’s incentive to proactively comply with the law.”

Forced arbitration clauses not only protect abusers from a court of law but also silence employees from speaking publicly once through arbitration. Gretchen Carlson, a former Fox News anchor, sued Fox News after she was fired for allegedly refusing sexual advances from Fox News Chairman Roger Ailes. Fox attempted to have her claims adjudicated in closed-door mandatory arbitration instead of court, effectively requiring that the details of her case be legally hidden from the public. Since settling her lawsuit with Fox News, Gretchen Carlson has been an advocate for legislation that prohibits forced arbitration clauses in employment and consumer contracts.

Legislation the Next Step

Outlawing forced arbitration clauses in employee contracts as a protection for American workers seems like a logical step, yet those protections are under attack. Last year, the Administration repealed  an executive order  safeguarding employees of federal contractors from forced arbitration clauses in their employment contracts. Congress then  canned a new regulation  from the Consumer Finance Protection Bureau that would have stripped forced arbitration clauses from contracts for financial services, like checking accounts and investment services. Recent Supreme Court decisions also have upheld the broader use of forced arbitration clauses in consumer contracts.

More encouraging was the announcement by Microsoft last December that it would eliminate forced arbitration clauses in employment agreements, showing that the flood of harassment accusations has gone beyond individual cases to inspire changes in corporate policy. However, given opposition by the U.S. Chamber of Commerce to closing this loophole, it is unlikely that most other major corporations will follow suit.

Thus, a bipartisan group from both the U.S. House and Senate has introduced legislation to ban arbitration clauses in harassment cases from all employment contracts. Called the  Ending Forced Arbitration of Sexual Harassment Act , this bill “prohibits a pre-dispute arbitration agreement from being valid or enforceable if it requires arbitration of a sex discrimination dispute.” Our hope is that with support from both sides of the aisle, this law will be passed to give those who have been sexually harassed or abused on the job their rightful day in a real court of law.

If you are facing sexual harassment then contact the Law Office of Mark Nicholson at 317-667-0718

This article was produced by the Glaser and Ebbs law firm and used with their permission.

source:  let america know

Kink Aware Professional
By Mark Nicholson May 11, 2026
Learn what a Kink Aware Professional is, how they help without judgment, and why kink-aware legal support matters for privacy, revenge porn, and kink-shaming cases.
Can an off duty cop pull you over in Indiana? Cop with gun
By Mark Nicholson May 5, 2026
Can an off duty cop pull you over in Indiana? Learn specific laws for unmarked cars, your rights during a stop, & how to challenge unlawful stops in Indiana.
Indiana Car insurance umbrella
By Mark Nicholson April 27, 2026
Indianapolis car accidents are a battlefield. Avoid the 7 common traps that destroy personal injury cases. Learn how to fix them and protect your claim.
Indiana's Minor’s Compromise,  child with parents
By Mark Nicholson April 21, 2026
Learn about Indiana's Minor’s Compromise statute and how it affects parents navigating legal claims for their children. Discover essential insights on our blog.
Victim of revenge porn in Indiana
By Mark Nicholson April 15, 2026
What is the statute of limitations for revenge porn in Indiana? Generally, 4 years from discovery. Learn about the law, and how to sue for nonconsensual disclosure.
Indiana Homeowner association rules
By Mark Nicholson April 15, 2026
Understand the essential homeowners association laws in Indiana. Know your rights and responsibilities as a homeowner in our informative blog post.
Judges in Indiana
By Mark Nicholson April 13, 2026
Discover the ins and outs of reckless homicide in Indiana. Our Nicholson Nugget law blog covers essential information and legal implications you need to know.
Indianapolis Gun Crimes Attorney
By Mark Nicholson April 6, 2026
Discover if you need a license to own a gun in your state. Learn about gun ownership license requirements, application steps, and legal compliance in Indiana.
Best DUI attorney in Indianapolis.
By Mark Nicholson March 30, 2026
What is the limit of alcohol when driving: learn BAC levels, legal consequences, and practical tips to stay safe and avoid penalties. In Indiana it is called OVWI.
Gavel
By Mark Nicholson March 17, 2026
What happens at arraignment hearing: Learn the steps, possible pleas, bail basics, and how to prepare for your first court appearance in the State of Indiana.
More Posts