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Forced Arbitration: Challenges in Discrimination Claims
Arbitrations

Forced Arbitration: Challenges in Discrimination Claims

By Jason Tenenbaum 3 min read

Why Trust This Analysis

This article is part of our ongoing arbitrations coverage, with 109 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.

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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.

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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

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Jason Tenenbaum, Esq.

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

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