The most important attempt to review mandatory arbitration procedures at the federal level was the Proposed Arbitration Act (AFA). Although there were different versions of the status, the latest version would amend the FAA to clarify that “… No pre-settlement agreement is valid or enforceable if it requires arbitration of an employment dispute, consumer dispute, agreement or civil law proceeding. 66 Prima Paint and its descendants allow a court to pick up a potentially valid arbitration agreement from a potentially invalid contract. Today, the court inserts a new layer of separation – much like the Russian punchers – into the mix: the courts can now, from a potentially null arbitration agreement, obtain even stricter provisions that pass on certain arbitrator disputes to an arbitrator [highlighted in the original]. The introduction of exemptions for collective actions is an important new feature of binding arbitration agreements, both in the employment and consumer sectors. The 2011 Supreme Court decision in at T/. Concepcion, which maintains the applicability of class action waiver declarations, encourages the adoption of class actions in arbitration agreements. A corporate defence law firm recently estimated that the percentage of companies that will enter arbitration clauses with the waiver of class action in their contracts has increased from 16 percent in 2012 to 43 percent in 2014.45 What can be learned from this decision, is that the California Supreme Court continues to support mandatory conciliation of employment disputes, whether in the contract or in an unlawful act (discrimination, harassment and other violations that are not due to a contract). However, for the arbitration agreement to be applicable, the agreed procedure must be fair and impartial and not “shock” the conscience of the Court of Review because of its significant procedural restrictions and obstacles. The agreement must continue to allow workers to justify their rights in a fair and impartial forum. Recently, the California Supreme Court dealt with Armendariz v.
Foundation Health Psychcare Services Inc. (August 24, 2000) 00 C.D.O.S. 7127. In Armendariz, two staff members filed a complaint of unlawful dismissal, including charges of sexual harassment, discrimination and breach of contract. The two staff members filled out application forms containing a compromise clause and then entered into a separate work agreement. In general, the agreement required the worker to submit all employment-related rights to binding arbitration proceedings under California`s arbitration status (the clause did not require the employer to settle the claims he had initiated). The agreement also limited workers` remedies to the wages they deserved between the date of dismissal and the date of arbitration. The clause expressly excluded the award of wages, psychological difficulties, punitive damages, rights of re-institution and/or omission. An arbitration award also has substantial advantages in the implementation of the outcome of a dispute. Although there is no global system of mutual enforcement of judgments, 159 countries are parties to the 1958 New York Convention on the Recognition and Enforcement of Arbitration Awards (the New York Convention), which requires national courts to recognize and apply arbitration awards on a reciprocal basis, as if the award were a judgment of the enforcement court. Application considerations can be particularly important for international labour-related contracts.
Another important finding of the CFPB study is that most consumers are unaware that they have binding arbitration agreements.