The Senate Judiciary Committee has voted to advance the Protecting Older Americans Act of 2023, a bipartisan legislation aimed at safeguarding older workers from workplace discrimination by eradicating forced arbitration.
Forced arbitration
At present, companies can impose mandatory arbitration on employees, a practice that bars those facing age discrimination from bringing their grievances to court, instead funnelling them into private negotiations that conceal alleged misconduct.
The Economic Policy Institute reveals that larger organisations are more inclined to use mandatory arbitration agreements, often hidden in the small print of employment contracts. These not only compel workers into arbitration when they allege age discrimination, but also prohibit the gathering of evidence for potential claims.
Lack of transparency and accountability
Addressing the committee, Senator Cory Booker noted that the most egregious aspect of forced arbitration is that it conceals the extent of discrimination within the workforce from the public eye. Lack of visibility provides a shield for employers and undermines the need for transparency.
He argued, "When employees who have been discriminated against have no recourse but to go into these clandestine meetings of forced arbitration, there's no sunshine on how pernicious this kind of discrimination is, destructive it is… And when companies settle these claims and get their gag orders, they go about their business".
Progression of the bill
The bill will now progress from the committee stage to the floor, where it will be open to further debate and potential modifications before the subsequent vote.