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On May 21, 2001, the Supreme Court ruled in Circuit City Stores, Inc. v Adams, 121 S. Ct. 1302 that arbitration agreements in nonunion workplaces are legally enforceable. In the Circuit City case, Adams signed an employment application at Circuit City, requiring arbitration of all future employment disputes with the employer. Two years after being hired, Adams sued Circuit City for employment discrimination under the California Fair Employment and Housing Act. Circuit City subsequently filed suit in federal court to enjoin the state court action and compel arbitration. The case ultimately went to the Supreme Court, which ruled that the arbitration agreement signed by Adams was fully enforceable and barred court litigation.
ESCALATING USE OF ALTERNATIVE DISPUTE RESOLUTION
As the number of lawsuits and damage awards continues to escalate, companies are increasingly employing alternative dispute resolution (ADR) as a means of resolving a wide variety of disputes with customers and employees, in lieu of litigation. ADR is widely used in resolving commercial disputes in such areas as real ...
Source: HighBeam Research, Resolving Nonunion Employment Disputes Through Arbitration. (Forum on...