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Supreme Court Says Arbitration Does Not Prevent Federal Lawsuits

January 16, 2002
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WASHINGTON, DC — An arbitration agreement that stops an employee from suing an employer for discrimination does not prevent the federal government from filing a discrimination lawsuit on behalf of the worker, according to a decision handed down by the U.S. Supreme Court.

Ruling in favor of the Equal Employment Opportunity Commission (EEOC), the Supreme Court indicated that the federal agency can bring these lawsuits, effectively overruling a decision made last year that arbitration was acceptable.

Employee lawyers had argued that mandatory arbitration was not fair to workers.

Publication date: 01/16/2002

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