Agreements to arbitrate "any controversy arising out of or in connection with compensation, employment or termination of employment" are enforceable.
These agreements to arbitrate are also enforceable against statutory claims, e.g., claims under Title VII for race discrimination, claims under the ADA for handicap/disability discrimination and claims under the ADEA for age discrimination.
In Bosse v. New York Life Insurance Co., et al., 992 F.3d 20 (1st Cir. 2021), the First Circuit Court of Appeals issued a decision upholding the enforceability of an arbitration agreement that delegates the arbitrability of claims issues to an arbitrator, and not to a court.
Under Federal law (9 U.S.C. s. 10(a)) arbitration awards can be vacated only if:
The arbitration award was procured by corruption, fraud or undue means;
There was evident partiality or corruption in the arbitrator;
The arbitrator was guilty of misconduct by which the rights of a party were prejudiced; or
The arbitrator exceeded his powers or so imperfectly executed them that a mutual, final and definite award was not made.
Under a new Federal law entitled Ending Forced Arbitration Act (H.R. 4445), amending the Federal Arbitration Act, (9 U.S.C. s. 401), as of March 4, 2022, any person alleging sexual harassment or sexual abuse can invalidate any predispute arbitration agreement or class/collective action waiver that otherwise would require the claim to be arbitrated. Agreements to arbitrate sexual harassment or sexual abuse claims made after such claims have arisen remain enforceable and cannot be invalidated.
Courts, not arbitrators, decide if this Act is applicable.