Thanks from a reader….
Thank You for your informative blog about arbitration.
I recently have been hired at Macy’s and have been introduced to their “Solutions In Store” arbitration policy. The only way to opt-out of their mandatory arbitration, new hires need to mail an opt-out card within 30 days of being hired, which I am going to do!
From thoroughly researching online, I know that just mailing the opt-out card is not enough. I also have to receive a confirmation letter that my opt-out has been processed. That confirmation letter will be my only evidence in court that proves I officially declined the final and binding arbitration process. I have a sneaky suspicion that Macy’s is going to make this process very difficult. Good thing that I am persistent!
For orientation, Macy’s has a pamphlet and video on why their arbitration policy benefits the employee. Macy’s really tries to make new hires feel fortunate that arbitration is the policy.
I would want my day in court if I were ever to be an unfortunate victim of a crime. It is hard for me to comprehend that an employer can take basic rights away from their employees.
One concern that bothers me about opting-out of the arbitration policy, is that I will be red-flagged as a potential law-suit. The 30 day opting-out period also coincides with my 60 day New Employee probation period. Macy’s policy says that declining arbitration will NOT affect employment.
I’ll let you know the results!
Thank you again for you blog,
Diana
Here’s something interesting and related….
Employee Failed to Produce Evidence That He Opted Out of Arbitration Agreement
In ordering arbitration of an employment dispute, a federal district court in New York rejected the employee’s claim that he opted out of the arbitration agreement because there was no evidence to substantiate that claim.
In DuBois v. Macy’s East Inc., No. 06 CV 6522(NGG)(LB), 2007 WL 3193169 (E.D.N.Y. July 13, 2007), Macy’s implemented a dispute resolution program entitled Solutions InStore (SIS), which was a four-step process for resolving all workplace disputes with Step 4 being binding arbitration.
All employees were given an opportunity to opt out of the arbitration agreement. An opt-out form was mailed to employees with instructions to contact the SIS if they mailed in the opt-out form but did not receive confirmation that SIS received the form. According to the SIS office, they never received an opt-out form from DuBois, a Macy’s employee. Further, there was no evidence that DuBois had ever contacted SIS regarding the opt-out form.
After his employment was terminated, DuBois sued Macy’s for sexual harassment and wrongful discharge. In response, Macy’s moved to compel arbitration pursuant to the SIS program. DuBois responded by claiming that he opted out of the arbitration agreement and produced a signed copy of the opt-out form.
The Court rejected DuBois’ argument because there was no other evidence to substantiate his claim that he opted out of the arbitration agreement. As the Court noted, DuBois had a copy of the instructions advising him to contact SIS if he did not receive confirmation that SIS received his opt-out form. Accordingly, the Court concluded that DuBois was on notice that he had to act affirmatively to exercise his election to opt out of the arbitration agreement. Further, DuBois received follow-up correspondence from SIS thanking him for agreeing to participate in arbitration. The Court determined that because DuBois took no action, he effectively acquiesced to arbitration
Diana – thanks so much for your comments and feedback! I love to hear from people that find this blog useful.
Ehren
Hi, cool post. I have been thinking about this issue,so thanks for sharing. I will likely be subscribing to your site. Keep up the good work
I just received an award against my small company in arbitration. Without going into great length/detail this disagreement was with my contractor for my new building for our business. The award against us is upwards of $800,000, which I cannot afford and will through my business into chapter 7. My attorney, my cpa, and my expert witnesses were completely shocked how the arbitrator entirely ignored all of our testimony and our facts. We continually showed with documents and facts that our opponent was lying (perjury), but it was ignored. My attorney says we may have an opportunity for appeal due to the nature of this award. These details are vague, I know, but are you available to talk?
Of course – please feel free to email me at ebragg@the-beach.net