So for the past 20 years, we’ve been strongly recommending to our employer clients that they adopt arbitration policies and enter into arbitration
agreements with their employees. One of the reasons that those agreements can be so powerful is that the United States Supreme Court has held that the federal
law on arbitration requires the enforcement of agreements that say that the employee can only bring that
employees individual claims in arbitration where the case will be decided on the individual facts
applicable to that employee. By requiring individual arbitration based on individual facts, the employer can
limit their exposure to each employee and can avoid the add terrorum effect
that is used by the plaintiff’s bar in filing Paga or class actions where the aggregated liability is simply too large
for the employer to take the chance of trying to defeat the case on its merits.