A California law barring employers from requiring their employees to resolve serious workplace complaints in private runs afoul of federal law, a federal appellate court ruled Wednesday.
The 2 to 1 decision by a three-judge panel of the U.S. 9th Circuit Court of Appeals marked a legal victory for big businesses and employers, and a major blow to workers, labor advocates said.
Under what are known as mandatory arbitration agreements, employees are required to settle discrimination, harassment and other workplace complaints in private, closed-door sessions rather than in public court proceedings. Such agreements have proliferated in recent years and are often forced on workers as a condition of employment.
