HR Issues

Consequences of forced arbitration?

Splunk iugd53
Mar 13

Forced arbitration is a hot topic at Splunk right now. I didn’t really know this was a thing until a couple weeks ago. How is this even legal? It’s so one-sided in the favor of the company from everything I have read. It seems like a convenient way to silence employees who have legitimate grievances.

Or is there something I am missing?

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  • Microsoft X9pl12
    Don’t worry, you definitely understand it clearly.
    Mar 133
    • Splunk iugd53
      OP
      So what you’re saying is that it’s as one-sided as it appears? That actually IS what I was worried about.
      Mar 13
    • Facebook FastFinger
      Don't worry, you're worried about the right things.
      Mar 14
    • Splunk jhlxoh
      yep, arbitration is how companies screw us.
      Mar 14
  • Uber yettis
    Funny how no one noticed that it was Uber, of all the tech companies who removed forced arbitration as one of the first, almost a year ago. Google and Facebook followed later. But most tech companies still have this.

    gle.co.uk/amp/s/kkkk://www.recode.net/platform/amp/2018/11/9/18081520/facebook-forced-arbitration-change-sexual-harassment-uber-google
    Mar 132
    • eBay benice
      I’m sure it had nothing to do with Uber’s disastrous 2017
      Mar 14
    • StubHub jg9dgm
      I believe this is only in cases ofsexual harrasment and not a blanket removal
      Mar 14
  • LinkedIn Pongal
    @Op I have never seen any reason for 99% (except the insane) to actually have anything to worry about regarding these clauses. Worse case scenario is that you get laid off or let go. Not fun but unless you’re an incompetent boob, it’s typically no more than an irritation or inconvenience in a market like this one.
    Mar 147
    • Shopify u73v0e5g28
      This is such an ignorant statement.

      It's like the "why do you need privacy if you have nothing to hide" argument.
      Mar 14
    • Shopify u73v0e5g28
      Let's word it this way, if it'll be fine 99% of the time, then why have the arbitration clause? If the company does nothing wrong, then they don't need the arbitration clause in the first place.

      Arbitration clauses are just there so companies can save face when they do something illegal and get sued for it. They also help make sure that others don't find out that they have also been wronged by the company.

      The only benefit to doing arbitration is it helps them get away with shady shit. It's more expensive for you, it takes away your rights, it's biased against you, there really is NO way where it's to your benefit.
      Mar 14
    • Flagged by the community.

    • Clover Health doenfh
      Well, forced arbitration would ensure you’d never see any reason for 99% to worry.
      Mar 14
    • Oracle BjGO24
      There are scenarios we can all get totally screwed over by, talented or untalented alike. What if your equity shoots up in value and they pip you because they want to claw back the RSUs? Say goodbye to a cool million, even though you are a smart fella that worked his ass off when stock was low.
      Mar 14
    • LinkedIn Pongal
      @doenfh doesn’t the same exact thing happen when the employee decides to change gigs on their own? Let’s say they gave you 1M in RSU’s the day you started on a 3-4 year vest. Typically you’re looking at getting 40% after your first year. After that you get it paid out quarterly for the next 2-3 years. IF they decided to whack you the day before your first vest, that wouldn’t fly even in arbitration as it looks really dodgy which it would be. Now that says s if you committed some real malfeasance or physically assaulted or abused someone it wouldn’t go your way. What am I missing?
      Mar 14
    • Amazon dfT58k
      "that wouldn't fly even in arbitration"

      How naive are you? The company will obviously clear themselves of any wrongdoing.
      6d
  • Microsoft Omni
    If you are in California, there is an opt out clause in your contract but you only have 30 days to opt out so most people don’t read the contract and don’t opt out so they get automatically opted into arbitration.
    Mar 135
    • Oracle jojol
      How do you initiate opt out?
      Mar 13
    • Facebook fb🦄
      Not legal advice :) The opt out is very important. However, it’s usually not a full opt out. It’s usually an opt out of certain clauses only. However, if you dispute the legality of the arbitration agreement later, whether you signed or did not sign the opt out is important to showing intent. Sign the opt out.
      Mar 13
    • Splunk iugd53
      OP
      Can someone get fired for opting out? I imagine that would make HR watch that employee even more for not being a “team player.”
      Mar 13
    • Microsoft Omni
      It’s written in your contract, and how to opt out is also specified. Most companies it’s sending an email to with subject line “opt out...”. It’s not grounds for dismissal, it goes to some random account. Your manager etc won’t even know. You only have a short time from joining to do it though, if you’ve been at the company for a long time it may be too late already.
      Mar 13
    • Facebook fb🦄
      No it’s totally fine to opt out. But you have to sign the rest of the agreement usually as a condition of your employment. Opt out is usually an addendum to the agreement and does not cover the full agreement.
      Mar 13
  • Intuit xudb
    How is it not a trust (as in Rockefeller) when most/all employers do the same thing, leaving employees with effectively no choice?
    Mar 143
    • Splunk jhlxoh
      because Republicans wanted it this way?
      Mar 14
    • Intuit xudb
      No matter how much the general public thinks that tech workers are overpaid, we are just simple cogs in the personal wealth machine of the monied elite, and this reality grinds at my soul so hard I can barely stand it.
      Mar 14
    • Intuit xudb
      I wonder how long it will take before tech workers stand up together and say “enough is enough! You need us to feed your greed, as much as we need you to earn a living!”
      Mar 14
  • Google davi5
    Yes, it's very one-sided. Simply a way for companies to cut potential legal costs by making employees sign away their right to a fair trial.
    Mar 142
    • Shopify u73v0e5g28
      And they make you pay for the arbitration in most cases.

      So, let's assume that you are destined to lose, in arbitration, you will end up paying more than in an open trial.
      Mar 14
    • Splunk jhlxoh
      forced arbitration perpetuates sexual harassment in the workplace.

      #metoo
      Mar 14
  • Splunk jhlxoh
    with all the harassment lawsuits going on at Splunk, it started more lawsuits by employees suing to get out of their forced arbitration agreements in order to sue in open court.

    Tomorrow in Seattle, judge Catherine Shaffer will rule if Splunk employment agreement's forced abitratration clause violates Washington state law.

    Splunkers mostly seem upset at the "limited discovery" provision which impedes investigations and the evidence discovery process. From my reading, it is very one sided and only benefits the employer.
    Mar 141
    • Amazon scoops34
      "only benefits the employer" lol
      You understand perfectly. That is the entire purpose of HR.
      Mar 14
  • Amazon sinter
    It is absolutely an end run around the justice system. The federal arbitration act should be repealed.
    Mar 140
  • Uber bbanan
    At Uber we have forced arbitration but guess what? The CLO and CSO negotiated it out of their contracts while the rest of us have no proper legal recourse, so yes, you understand .
    Mar 142
    • Amazon scoops34
      They negotiated it out of their contracts? Wtf?
      I didn't know that was even something that you could try to do.

      CLO is Chief Legal Officer, right? Doesn't that really say something if your legal dude negotiated out of it?
      Mar 14
    • Amazon 8663472423
      You could definitely negotiate anything. You just have to pick your battles. My friend was able to remove arbitration clause from his contract as a college hire. But I would rather negotiate my TC instead of arbitration clause
      Mar 14
  • Facebook fb🦄
    It does favor companies but there’s an argument to be made that it’s also less costly, faster, simpler for all. But generally I do not sign unless I have to. I prefer not to have my access to a courtroom taken away from me.
    Mar 130
  • Intuit xudb
    I would like to see regulation that says execs have to be bound by the same agreements as the common employee. Does somebody want to suggest this to their congressman?
    Mar 142
    • LinkedIn Pongal
      @xudb perhaps you should take your Soviet business mind back to your prior success in Venezuela. Is that you AOC...?
      Mar 14
    • Intuit xudb
      The way executives negotiate terms and conditions prior to hire, in a way that the common employee cannot, is what allows execs accused of sexual harassment to walk away with 90 million dollar packages, as happened at Google recently.
      Mar 14
  • Facebook fb🦄
    Careful with medical practices too - I had one slipped in with a bunch of paperwork last year and changed doctors.
    Mar 132
    • Splunk iugd53
      OP
      ?
      Mar 13
    • Facebook fb🦄
      Arbitration agreement instead of medical malpractice claim.
      Mar 13
  • Splunk monkeyluv
    Like you sold your soul.
    Mar 141
  • New EMVH32
    Any agreement is enforced as if it’s the law as long as its legal (read: doesn’t involve a crime).
    Mar 131
    • Facebook fb🦄
      This is not entirely true.
      Mar 13
  • Shopify u73v0e5g28
    Yeah, arbitration clause are everywhere, in whatsapp, snapchat, all sorts of companies use them in their ToS, or in their employment agreement.

    Read everything you click agree to or sign. I do, and I only agree to ones where I can opt out of arbitration, and I do opt out each time.
    Mar 140
  • Microsoft tech.ladki
    OP, did you not read your offer letter? How come you didn't hear about it?
    Mar 141
    • Microsoft blankuname
      Does Microsoft have it too? I don’t remember reading this
      Mar 14
  • Clover Health doenfh
    Yep we're going through the same. Shady af.
    Mar 130
  • Microsoft eThi53
    Trivial first world problems!!!
    Mar 141
    • PayPal vhfeyijb
      Until you find yourself in the middle
      7d
  • Yelp welppp
    Shiet, can I opt out now? I’ve been working for 6 months
    Mar 140

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