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Forced & Mandatory Arbitration
Arbitration guide

Forced & Mandatory Arbitration

Forced (or mandatory) arbitration means a company requires you to arbitrate future disputes as a condition of a job, product, or service — you can't sue in court. Critics say it favors repeat-player companies and hides claims; supporters say it's faster and cheaper than litigation.

Mandatory arbitration is generally legal under the Federal Arbitration Act, but the law is shifting: the 2022 Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act lets those claims go to court despite a clause, and more reforms are debated.

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Frequently asked

Forced & Mandatory Arbitration — questions answered

What is forced arbitration?

It's when a company requires you to give up the right to sue and instead arbitrate disputes, usually via a clause you accept to get a job, loan, or service.

Is mandatory arbitration legal?

Generally yes under the Federal Arbitration Act. But a 2022 federal law carves out sexual assault and harassment claims, letting them proceed in court despite an arbitration clause.

Why do people say forced arbitration is unfair?

Because the company often picks the forum and rules, class actions may be barred, proceedings are private, and 'repeat-player' companies appear before the same arbitrators, which critics argue tilts outcomes.

Can I get out of mandatory arbitration?

Sometimes — through an opt-out window, if the clause is unconscionable, if a statute exempts your claim (like sexual harassment), or if the clause doesn't cover the dispute.

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Attorney.plus is not a law firm and does not provide legal advice. This is general information about arbitration, not a substitute for advice from a licensed attorney in your jurisdiction.

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