As we reported here and here, New York State has enacted laws prohibiting mandatory arbitration of sexual harassment claims and all other discrimination claims under the New York State Human Rights Law. And, as we anticipated, a New York federal district court has now ruled that those state anti-arbitration laws are preempted by the Federal Arbitration Act. Although the court’s ruling may be appealed, employers can feel much more confident that their arbitration agreements will be enforceable. With the recent spate of plaintiff-friendly employment laws in New York, employers should consider implementing an arbitration program for their New York employees if they do not have one already.
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Court strikes down New York anti-arbitration provisions
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