Tag Archives: Morgan Stanley

Southern District of New York Rules Federal Law Preempts New York State Law Banning Arbitration of Sexual Harassment Claims





Many retail employers require their employees to agree to arbitrate employment-related disputes as a condition of employment. The United States Supreme Court has repeatedly emphasized that workplace arbitration agreements are enforceable according to their terms, and state law that restricts such enforcement is preempted by the Federal Arbitration Act (“FAA”). Notwithstanding those pronouncements, states, such as New York and New Jersey, have crafted legislation designed to nullify an employee’s agreement to arbitrate certain employment-related claims.

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Arbitration Here We Come – New York State Statute Believed to Prohibit Mandatory Arbitration of Sexual Harassment Claims Is Found by the Federal Court to Be Inconsistent with Federal Law

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