Samantha signed an employment contract with True Diva Cosmetics (TDC)to work as a sales clerk.The agreement included a mandatory arbitration clause in case of any employment disputes.After Samantha was denied a promotion,she filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC).The manager of TDC told Samantha that her employment contract requires her to seek redress through arbitration,not the EEOC.Which of the following holds true in this scenario?

Question

Quizplus · Accepted Answer

The Equal Employment Opportunity Commission (EEOC) can pursue Samantha's case because it was not a party to the employment agreement. 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. In such cases, an employer may have to contend with the EEOC bringing suit on its own.

Samantha Signed an Employment Contract with True Diva Cosmetics (TDC)to