Mandatory arbitration clauses in employment contracts are generally enforceable.

Question

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The United States Supreme Court has generally held that mandatory arbitration clauses in employment contracts are enforceable under the Federal Arbitration Act. However, there are some exceptions and limitations to this rule, such as when the arbitration clause is unconscionable or when the employee is not given a meaningful opportunity to opt-out of the clause.

Mandatory Arbitration Clauses in Employment Contracts Are Generally Enforceable