On December 17, 2019, the U.S. Equal Employment Opportunity Commission (EEOC) announced its rescission of Policy Statement on Mandatory Binding Arbitration of Employment Discrimination Disputes as a Condition of Employment (Policy No. 915.000, July 1997) because it does not reflect current law. Under Policy No. 915.000, the EEOC had claimed that agreements mandating binding arbitration of discrimination claims as a condition of employment are contrary to the fundamental principles of employment discrimination laws.
The EEOC’s current decision to rescind the policy statement is based on the following:
Of note, the rescission of this policy statement does not limit the EEOC’s ability, or any other party’s ability, to challenge the enforceability of a particular arbitration agreement.