Many employers include an arbitration clause in their employment contracts. An employee who signs this contract, gives up his or her right to sue in court over any job-related issues that may arise such as claims for wrongful termination, minimum wage payment violations, and overtime pay violations. Today’s employment law blog discusses recent developments about the applicability of arbitration clauses to claims of unpaid wages and overtime in New York.
Employers like to include arbitration clauses because the arbitration process is generally a quicker and cheaper alternative to a proceeding in court. Yet, a worker recently disagreed with a court’s decision requiring that he use arbitration instead of filing his Fair Labor Standards Act (“FLSA”) claim in court.
On December 12, 2017, the Second Circuit Court of Appeals was asked to decide whether claims under unpaid wage and overtime claims underthe FLSA are in fact subject to arbitration.