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Forced Arbitration: Challenges in Discrimination Claims
Arbitrations

Forced Arbitration: Challenges in Discrimination Claims

By Jason Tenenbaum 8 min read

Key Takeaway

Explores forced arbitration in discrimination claims, examining laws with the 2021 EFAA, impacting employee rights and employer policies.

This article is part of our ongoing arbitrations coverage, with 70 published articles analyzing arbitrations issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.

forced arbitration

Forced Arbitration

Many people don’t realize that signing certain agreements can strip away their right to take discrimination claims to court. Ride-share companies like Uber and Lyft often include clauses in their terms of service requiring disputes—including discrimination cases—to go through arbitration instead. This piece breaks down how federal and state laws collide on this issue, especially since the 2021 Ending Forced Arbitration Act (EFAA) changed the game for some workers. We’ll look at what these laws mean for employees and employers, when arbitration can be enforced, and how recent updates affect legal strategies.

Can Employers Force Arbitration for Discrimination Claims?

For decades, the Federal Arbitration Act (FAA) set the rules for handling workplace disputes. Under this law, courts typically enforce arbitration agreements unless there’s a clear exception. But in 2018, New York tried to shift the balance. The state passed a law blocking employers from forcing employees into arbitration for discrimination claims, aiming to protect workers’ access to public courts.

The problem? Federal law often overrides state efforts. If a job involves interstate commerce—think companies operating across state lines or handling goods nationally—the FAA usually wins. This created confusion. Even with New York’s protections, many workers found their discrimination claims funneled into arbitration because their jobs touched on interstate activities. Courts have consistently backed the FAA’s broad reach, leaving state laws like New York’s with limited power.

How the 2021 Ending Forced Arbitration Act Changed the Rules

Congress took a stand in 2021 with the EFAA, targeting one specific area: sexual misconduct. The law prohibits employers from forcing sexual assault or harassment claims into arbitration. Now, employees with these claims can choose to go to court, even if they signed an arbitration agreement. This shift empowers survivors to pursue their cases publicly, a significant win for workplace rights advocates.

But the EFAA isn’t a blanket solution. It doesn’t cover race, age, disability, or religious discrimination claims. If you’re challenging unfair treatment based on these factors, your employer might still push for arbitration under the FAA. Timing also matters—claims arising before March 2021 aren’t protected by the EFAA, meaning older cases could still end up in arbitration.

What This Means for Workers and Employers Today

The legal tug-of-war between state and federal rules creates uncertainty. Take a New York employee with a disability discrimination claim in 2025: their employer could argue the FAA applies due to interstate commerce, forcing arbitration despite state laws. These situations require careful analysis of the job’s scope, employer operations, and the discrimination alleged.

Employment contracts play a huge role here. Many workers sign arbitration clauses without grasping the consequences—like losing the chance to argue their case before a jury. Courts usually uphold these agreements, assuming both parties knowingly consented. That’s why scrutinizing contracts before signing matters. A quick review by a lawyer can clarify whether you’re giving up critical rights.

Employers aren’t off the hook either. Laws vary by state, and federal updates like the EFAA mean policies need regular refreshes. A clause that worked in 2020 might now be unenforceable for certain claims. Companies operating in multiple states face even more complexity, juggling conflicting regulations. Staying ahead requires proactive legal counsel and clear communication with employees about their rights.

Key Takeaways for Navigating Arbitration Disputes

  • Know the Exceptions: Sexual assault and harassment claims filed after March 2021 generally can’t be forced into arbitration. Other discrimination types? It depends.
  • State vs. Federal Clashes: Even worker-friendly states struggle to override federal arbitration rules when interstate commerce is involved.
  • Contract Vigilance: Never sign an employment agreement without understanding the arbitration terms. Once signed, backing out is tough.
  • Legal Guidance Is Critical: Whether you’re an employee assessing options or an employer updating policies, expert advice helps avoid missteps.

The bottom line? Arbitration remains a minefield for discrimination cases. While the EFAA carved out vital protections, gaps persist. Workers must stay informed about their rights, and employers need to balance efficiency with fairness. As courts continue to interpret these laws, one thing’s clear: the fight over workplace justice is far from settled. Contact the Law Office of Jason Tenenbaum, P.C. to help address these complex issues.

Disclaimer: This article provides general information and does not constitute legal advice. Consult an attorney for guidance on your specific situation.

For more information on forced arbitration, check out the video below:

Legal Context

Why This Matters for Your Case

Employment law in New York provides some of the strongest worker protections in the nation. The New York State Human Rights Law (Executive Law §296) prohibits discrimination based on race, sex, age, disability, sexual orientation, gender identity, and other protected characteristics. The New York City Human Rights Law goes even further, applying a broader standard and covering more employers.

Federal protections under Title VII, the ADA, the ADEA, and the FLSA provide additional layers of protection. The Law Office of Jason Tenenbaum represents employees facing workplace discrimination, wrongful termination, wage theft, hostile work environments, and employer retaliation throughout Long Island, Nassau County, Suffolk County, and the five boroughs of New York City.

Whether your case involves EEOC filings, NYS Division of Human Rights complaints, or direct court action under CPLR Article 78, this article provides the expert legal analysis that workers and practitioners need to understand their rights and develop effective litigation strategies under current New York employment law.

About This Topic

No-Fault Arbitrations in New York

No-fault arbitration is the primary forum for resolving disputes between medical providers and insurers over claim denials. The arbitration process has its own procedural rules, evidentiary standards, and appeal mechanisms — including master arbitration and Article 75 judicial review. Understanding arbitration practice is essential for any attorney handling no-fault claims. These articles cover arbitration procedures, hearing strategies, award enforcement, and the grounds for challenging arbitration outcomes in court.

70 published articles in Arbitrations

Common Questions

Frequently Asked Questions

How does no-fault arbitration work in New York?

No-fault arbitration is conducted under the American Arbitration Association's rules. The claimant (usually a medical provider) files a request for arbitration after the insurer denies a claim. An assigned arbitrator reviews written submissions from both sides — including medical records, denial letters, peer reviews, and legal arguments — and issues a written decision. Arbitration awards can be confirmed in court under CPLR Article 75, and either party can appeal to a master arbitrator. No-fault arbitration is generally faster and less expensive than litigation.

What constitutes workplace discrimination in New York?

New York law prohibits employment discrimination based on protected characteristics including race, color, religion, sex, national origin, age, disability, sexual orientation, gender identity, marital status, military status, and domestic violence victim status. Both the New York State Human Rights Law (Executive Law §296) and the New York City Human Rights Law (Administrative Code §8-107) provide protections, with the city law offering broader coverage and more employee-friendly standards. Discrimination can occur in hiring, firing, promotions, compensation, and other terms and conditions of employment.

What should I do if I'm being harassed at work?

If you're experiencing workplace harassment, you should document every incident with dates, times, locations, witnesses, and details. Report the harassment through your employer's internal complaint process and keep copies of all written complaints. If internal reporting doesn't resolve the issue, you can file a complaint with the New York State Division of Human Rights, the NYC Commission on Human Rights, or the EEOC. Consulting an employment attorney early can help preserve your rights and identify the strongest legal strategy.

What protections exist against wrongful termination in New York?

New York is an at-will employment state, meaning employers can terminate employees for any lawful reason. However, termination is illegal if motivated by discrimination based on a protected class under the NY Human Rights Law (Executive Law §296) or in retaliation for protected activity such as filing a complaint, whistleblowing under Labor Law §740, or requesting reasonable accommodations. The NYC Human Rights Law provides even broader protections, including coverage for smaller employers.

What are my rights regarding unpaid wages in New York?

Under the New York Labor Law, employers must pay minimum wage (currently $16/hour in NYC and surrounding counties), overtime at 1.5 times the regular rate for hours over 40 per week, and all earned wages on regular paydays. Labor Law §198 allows employees to recover unpaid wages plus liquidated damages equal to 100% of the unpaid amount, along with attorney's fees. Claims can be filed with the NY Department of Labor or through a private lawsuit within six years.

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Attorney Jason Tenenbaum

About the Author

Jason Tenenbaum, Esq.

Jason Tenenbaum is the founding attorney of the Law Office of Jason Tenenbaum, P.C., headquartered at 326 Walt Whitman Road, Suite C, Huntington Station, New York 11746. With over 24 years of experience since founding the firm in 2002, Jason has written more than 1,000 appeals, handled over 100,000 no-fault insurance cases, and recovered over $100 million for clients across Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island. He is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.

Jason is admitted to practice in New York, New Jersey, Florida, Texas, Georgia, and Michigan state courts, as well as multiple federal courts. His 2,353+ published legal articles analyzing New York case law, procedural developments, and litigation strategy make him one of the most prolific legal commentators in the state. He earned his Juris Doctor from Syracuse University College of Law.

24+ years in practice 1,000+ appeals written 100K+ no-fault cases $100M+ recovered

Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.

New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.

If you need legal help with a arbitrations matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.

Jason Tenenbaum, Personal Injury Attorney serving Long Island, Nassau County and Suffolk County

About the Author

Jason Tenenbaum

Jason Tenenbaum is a personal injury attorney serving Long Island, Nassau & Suffolk Counties, and New York City. Admitted to practice in NY, NJ, FL, TX, GA, MI, and Federal courts, Jason is one of the few attorneys who writes his own appeals and tries his own cases. Since 2002, he has authored over 2,353 articles on no-fault insurance law, personal injury, and employment law — a resource other attorneys rely on to stay current on New York appellate decisions.

Education
Syracuse University College of Law
Experience
24+ Years
Articles
2,353+ Published
Licensed In
7 States + Federal

Legal Resources

Understanding New York Arbitrations Law

New York has a unique legal landscape that affects how arbitrations cases are litigated and resolved. The state's court system includes the Civil Court (for claims up to $25,000), the Supreme Court (the primary trial court for unlimited jurisdiction), the Appellate Term (which hears appeals from lower courts), the Appellate Division (divided into four Departments, with the Second Department covering Long Island, Brooklyn, Queens, Staten Island, and several upstate counties), and the Court of Appeals (the state's highest court). Each court has its own procedural requirements, local rules, and case-assignment practices that can significantly impact the outcome of your case.

For arbitrations matters on Long Island, cases are typically filed in Nassau County Supreme Court (at the courthouse in Mineola) or Suffolk County Supreme Court (in Riverhead). No-fault arbitrations are heard through the American Arbitration Association, which assigns arbitrators throughout the metropolitan area. Workers' compensation claims go to the Workers' Compensation Board, with hearings at district offices across the state. Understanding which forum is appropriate for your case — and the specific procedural rules that apply — is essential for a successful outcome.

The procedural landscape in New York also includes important timing requirements that can affect your case. Most civil actions are subject to statutes of limitations ranging from one year (for intentional torts and claims against municipalities) to six years (for contract actions). Personal injury cases generally have a three-year deadline under CPLR 214(5), while medical malpractice claims must be filed within two and a half years under CPLR 214-a. No-fault insurance claims have their own regulatory deadlines, including 30-day filing requirements for applications and 45-day deadlines for provider claims. Understanding and complying with these deadlines is critical — missing a filing deadline can permanently bar your claim, regardless of how strong your case may be on the merits.

Attorney Jason Tenenbaum regularly practices in all of these venues. His office at 326 Walt Whitman Road, Suite C, Huntington Station, NY 11746, is centrally located on Long Island, providing convenient access to courts and offices throughout Nassau County, Suffolk County, and New York City. Whether you need representation in a no-fault arbitration, a personal injury trial, an employment discrimination hearing, or an appeal to the Appellate Division, the Law Office of Jason Tenenbaum, P.C. brings $24+ years of real courtroom experience to your case. If you have questions about the legal issues discussed in this article, call (516) 750-0595 for a free, no-obligation consultation.

New York's substantive law also presents distinct challenges. In motor vehicle cases, the no-fault system under Insurance Law Article 51 provides first-party benefits regardless of fault, but limits the right to sue for non-economic damages unless the plaintiff establishes a "serious injury" under one of nine statutory categories. This threshold — codified at Insurance Law Section 5102(d) — requires medical evidence showing more than a minor or subjective injury, and courts have developed detailed standards for each category. Fractures must be documented through imaging studies. Claims of permanent consequential limitation or significant limitation of use require quantified range-of-motion testing with comparison to norms. The 90/180-day category demands proof that the plaintiff was unable to perform substantially all of their usual daily activities for at least 90 of the 180 days following the accident.

In employment discrimination cases, the legal standards vary depending on whether the claim arises under state or local law. The New York State Human Rights Law employs a burden-shifting framework: the plaintiff must first establish a prima facie case by showing membership in a protected class, qualification for the position, an adverse employment action, and circumstances giving rise to an inference of discrimination. The burden then shifts to the employer to articulate a legitimate, non-discriminatory reason for its decision. If the employer meets this burden, the plaintiff must demonstrate that the stated reason is pretextual. The New York City Human Rights Law, by contrast, applies a broader standard, asking whether the plaintiff was treated less well than other employees because of a protected characteristic.

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