The proposed Protecting Older Americans Act would invalidate forced-arbitration clauses that prevent age-discrimination victims by suing in court, where they could seek “justice and public accountability,” the bill’s sponsors contend. U.S. Senator Kirsten Gillibrand (D–N.Y.), Senate Judiciary Committee ranking member Lindsey Graham (R–S.C.); Senate Judiciary Committee Chair Dick Durbin (D–Ill.); and U.S/ Representative Nancy Mace […]
The proposed Protecting Older Americans Act would invalidate forced-arbitration clauses that prevent age-discrimination victims by suing in court, where they could seek “justice and public accountability,” the bill’s sponsors contend.
U.S. Senator Kirsten Gillibrand (D–N.Y.), Senate Judiciary Committee ranking member Lindsey Graham (R–S.C.); Senate Judiciary Committee Chair Dick Durbin (D–Ill.); and U.S/ Representative Nancy Mace (R–S.C.) on June 14 announced the bill.
Forced arbitration, or pre-dispute arbitration, occurs when a company requires an employee to submit any potential dispute to binding arbitration as a condition of employment, Gillibrand’s office said. As a result, employees waive their right to sue in court, “enabling a culture of secrecy that shields bad actors.”
In announcing the bill, the lawmakers were joined by former Fox News anchor Gretchen Carlson and Bill Sweeney, senior VP for government affairs at AARP. The legislation builds off the lawmakers’ successful effort last Congress to invalidate forced-arbitration agreements in cases of sexual harassment and sexual assault. Passage of the bill changed 60 million employment contracts “overnight.,” Gillibrand’s office noted.
“Three out of four older workers have seen or experienced age discrimination on the job, but too often cannot pursue justice because of forced arbitration, a secretive and unfair process that strips hard-working Americans of their constitutional right to a jury trial,” Gillibrand said in a news release. “The bipartisan Protecting Older Americans Act would ban forced arbitration in cases of age discrimination, enabling victims the chance to file their cases in court if they so choose, and giving them a voice in the process. Employers should no longer be able to use forced arbitration to hide illegal conduct. I am proud to introduce this bipartisan bill with my colleagues and I am optimistic we can pass this critical reform this Congress.”
A majority of older workers have reported witnessing age discrimination. Gillibrand’s office cited a 2020 AARP survey that indicated about 78 percent of older workers have either seen or experienced age discrimination in the workplace. That’s the highest level since AARP began tracking this statistic in 2003.
The share of workers subject to forced arbitration has more than doubled since the early 2000s, with more than half of nonunion, private-sector employees in America — about 60 million people — subject to forced arbitration today. Gillibrand’s office also cited the Economic Policy Institute as indicating the number is projected to increase to over 80 million in 2024.
“Older workers who face age discrimination should have the option of having their case heard in court with the legal protections provided under the law,” Sweeney said. “Mandatory and binding arbitration clauses in contracts force employees to give up those rights, adjudicate disputes outside the courts, with fewer protections, and in forums often determined by the employer. AARP is pleased to endorse the Protecting Older Americans Act of 2023, which prohibits forced arbitration for age discrimination claims in the workplace.”
