Facebook Defends its Use of Forced Arbitration

Recent attention and media coverage relating to the #MeToo movement has lawmakers drafting new legislation to protect victims against sexual harassments in the workplace. A bipartisan bill aims to end forced arbitration used to resolve workplace disputes regarding sexual harassment.

The “Ending Forced Arbitration of Sexual Harassment Act of 2017,” although introduced last December, is back in the news after Huffington Post spoke to Facebook about its own arbitration process. Currently, Facebook is one of the companies that uses forced arbitration to settle issues like sexual harassment. Critics of forced arbitration believe that the secrecy of the arbitration process, which settles these disputes behind closed doors and out of court, silences victims of harassment and allows perpetrators to continue their behavior.

A spokesperson for Facebook told the Huffington Post that they believe their use of arbitration is “official and appropriate,” and haven’t yet taken a position on the bill. They believe arbitration is a neutral practice and good for employees because matters are kept private. However, tech giant Microsoft has taken the opposite position, announcing in December they would no longer take sexual harassment complaints to arbitration and would endorse the bill.

More about the Act

On February 12, 56 attorneys general from every state and U.S. territory showed support for the Act by signing a letter urging Congress to pass federal legislation banning mandatory arbitration clauses regarding sexual harassment and discrimination disputes.

Many employers in the U.S. are able to maintain what victim advocates call a “culture of silence” by requiring employees to sign mandatory arbitration agreements as a condition of employment. These employment clauses allow employers to avoid the public court system and deal with their claims of sexual harassment in a private, sealed forum.

Now, legislators are trying to create change and allow employees to publicly file claims of harassment and discrimination. The goal of this legislation is to give victims the forum to openly discuss their experiences and hopefully encourage other victims to come forward. The bill is sponsored by Representatives Cheri Bustos (D-Ill.), Walter Jones (R-N.C.) and Elise Stefanik (R-N.Y.), and Senators Kirsten Gillibrand (D-N.Y.), Kamala Harris (D-Calif.) and Lindsey Graham (R-S.C.).

The Act also aims to stop companies from protecting harassers. Currently, companies with arbitration agreements handle sexual harassment claims privately, outside of the public eye and media. Repeat offenders would no longer be able to hide behind these arbitration agreements.

If this bill passes, it could dramatically alter the course of employment litigation in the country. Of course, it remains to be seen if it will be introduced to the floor of the House in the near future. In the meantime, former Fox News Gretchen Carlson, a supporter of the Act, stated, “The bill gives women (and men) a choice: do they want a harassment claim to go to secret arbitration, or utilize their 7th amendment right and go to a public court? Any company outwardly lobbying against this bill makes one wonder what they may have to hide.”

Filing a claim for sexual harassment can feel like a big step. We understand if you’re apprehensive. However, the Los Angeles attorneys at Taylor & Ring have years of experience and can explain your rights. Call us today at 310.776.6390 or complete our contact form to schedule a consultation.