Arbitration Practices Under Fire for Role in Controversial Employee Binding Clauses

Recent reports have put arbitrators under scrutiny for their involvement in so-called “stay or pay” provisions that critics argue unfairly bind employees to their employers. According to a letter sent by the ACLU, the American Arbitration Association’s role in administering these provisions effectively amounts to facilitating a type of indentured servitude. The letter further states that by continuing this practice, the organization risks compromising its legitimacy as an impartial tribunal.

For further reading, the original article discussing this issue in greater detail can be found here.