As part of its hiring process,TE Electronics requires new employees to sign an agreement that requires arbitration in the event of any employment dispute.Jack applied and was hired by TE last summer.On his first day of employment,Jack signed the mandatory arbitration agreement.Jack is an Asian-American,and was recently passed over for promotion.Jack wants to file a charge of discrimination with the EEOC,but his supervisor says he cannot because of the arbitration agreement.Which of the following is true?

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In Circuit City v. Adams, the Supreme Court held that mandatory arbitration clauses requiring arbitration of workplace claims, including those under Title VII, are enforceable under the Federal Arbitration Act. In EEOC v. Waffle House, Inc., the Court held that even though an employee is subject to a mandatory arbitration agreement, since the EEOC is not a party to the agreement, the agreement does not prevent the EEOC from pursuing victim-specific relief such as back pay, reinstatement, and damages as part of an enforcement action. So, the EEOC claims can be the subject of mandatory arbitration, but this does not prevent the EEOC from bringing its own enforcement action against the employer and even asking for victim-specific relief for the employee. An employer can avoid a Title VII court case by requiring mandatory arbitration of workplace claims, but still may have to contend with the EEOC bringing suit on its own.

As Part of Its Hiring Process,TE Electronics Requires New Employees