Mark D. Gough Of The Cornell University School Of Industrial & Labor Relations Has Studied The Outcomes

     Mark D. Gough has published in the Berkeley Journal of Employment and Labor Law the results of a study of some 700 employment discrimination cases – and the results  are striking, whether looked at from the perspective of management or labor.

     Matthew M. Sonne, an attorney with an employer-based practice, draws the following conclusion from Dr. Gough’s study:  “Should the Company Utitilize Arbitration Agreements?  A Recent Empirical Study Says, ‘Yes.’” The Pros and Cons of Employment Arbitration Agreements, Orange County Business Journal, August 18, 2014, p. B-53.

    Hunter Pyle, an attorney with an employee-based practice, surely agrees that arbitration agreements benefit employers, but has a different slant, as represented by his blog post entitled, “The Profoundly Negative Impact of Arbitration on Workers’ Rights.”  Workers’ Rights Blog, March 2, 2014, published by Sundeen Salinas & Pyle. 

    While I have not found Dr. Gough’s article on line, Mssrs. Sonne and Pyle have summarized some of the key findings:

• Employees pursuing employment discrimination litigation in courts were nearly 40% more likely to win.  (Sonne).
• Employee discrimination awards in court were nearly twice as large as in arbitration.  (Sonne).
• The average award to a successful discrimination plaintiff in court was  $802,487, versus $412,052 in arbitration.
• “Arbitration decreases the odds of an employee win by 59%.” (Pyle).
• “Award amounts decrease by 35% in arbitration.”  (Pyle).

    Take a look at my earlier August 15, 2014 post entitled, “Executive Order Limits Pre-Dispute Arbitration Clauses For Federal Contracts Exceeding $1 Million In Title VII And Sexual Assault/Harassment Cases” – and draw your own conclusions.