WASHINGTON, D.C., JULY 31, 2014 – Alliance for Justice President Nan Aron released this statement on President Obama’s executive order curbing the use of forced arbitration by companies seeking government contract. The president is scheduled to sign the order this afternoon:
We commend President Obama for his executive order barring companies seeking government contracts from forcing their employees into arbitration over civil rights or sexual harassment claims.
Forced arbitration is a pernicious practice that forces consumers and employees to surrender their basic right to go to court when they are wronged by a corporation. Instead, they must go to an arbitrator chosen by that very company. Powerful interests are using forced arbitration to rig the system and undermine laws that protect consumers, workers, veterans, and small businesses.
We thank the president for recognizing the urgency of this issue and using his executive power to protect the rights of workers at companies doing business with the government, and we urge Congress to follow suit by passing the Arbitration Fairness Act to protect all workers and consumers.