HRPA Emphasizes Arbitration Benefits to Lawmakers

The Association submitted a letter to members of Congress urging lawmakers to avoid restricting arbitration and alternative dispute resolution mechanisms. Our letter indicates arbitration provides faster, cheaper, and more equitable dispute resolutions for all stakeholders. Although legislation is not expected anytime soon, members of Congress on both sides of the aisle continue to eye further restrictions on mandatory arbitration agreements.

Senate committee hearing on arbitration: The U.S. Senate Judiciary Committee held a hearing this week focusing on the effects of mandatory arbitration. Witnesses included Gretchen Carlson, a former Fox News host and outspoken advocate of prohibiting mandatory arbitration, and legal experts on both sides of the issue. 

HRPA: “Arbitration provides better outcomes.” To ensure the voice of our member companies was heard by the Committee, the Association submitted a letter to be included in the hearing record outlining the many benefits of alternative dispute resolution for all stakeholders, including:

• Arbitration is less expensive and more efficient than going to court. 
• Statistical studies have shown that arbitration, on average, provides more positive outcomes for claimants. 
• Arbitration is less adversarial in nature than formal legal proceedings. 
• Arbitration features resolution by neutral parties with specific expertise in the dispute at issue. 
• Courts constantly face overcrowded dockets and are therefore unable to efficiently handle disputes that could be easily resolved through arbitration. 
• The Supreme Court has overwhelmingly supported the use of alternative dispute resolution procedures. 

Looking ahead: Since Congress first limited the use of pre-dispute arbitration agreements in sexual assault and harassment cases in 2022, several bills have been floated that would restrict or prohibit such agreements in all cases. While such bills have yet to gain significant traction, they have garnered at least some bipartisan support, meaning that a future law banning or significantly restricting arbitration agreements is possible. HR Policy has consistently advocated against such measures and Roger King, our Senior Labor and Employment Counsel, has testified before Congress on this issue several times. The Association will continue to educate lawmakers on the benefits of arbitration to preserve its use.