After the Gilmer Decision: Effectiveness of Arbitration Clauses in Employment Contracts

Martha S. Weisel

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DOI: 10.2190/DDWT-0X1A-NNT3-JRA9

Abstract

Agreements between an employer and employee often contain a provision stating that the individual parties will settle disputes through the use of arbitration. These agreements can cause difficulties later when an employee who believes the employer has not complied with the law takes a case to the courts rather than seek arbitration—and the employer asks that the court refuse to hear the matter. It had been hoped that the U.S. Supreme Court—in the celebrated Gilmer decision—would give a clear red or green light to the use of employment contracts to waive the right to a judicial forum. The high court's signal gives a yellow light.

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