Plaintiffs’ lawyers work tirelessly to protect employee rights, battling employers who often prioritize their own interests over those of their workers. Big business needs you in their workforce. Still, they know workers need employment, and the lure of the job is enticing when faced with the alternative: unemployment. American workers have bills to pay and families to provide for. So, in exchange for offering employment, many employers ask workers to unknowingly bargain away their rights.
It is increasingly common for employers to require employees to sign employment agreements. These agreements do nothing to guarantee the employee’s job, as they often include language that states, “nothing in this agreement changes the employee’s at-will employment status,” or something similar. This means the employee can still be fired for any reason, no reason at all, or even a fabricated reason—as long as it’s not an unlawful reason.
The real purpose behind these agreements is to protect employers. When something unfair or unlawful happens to an employee, employers want to make sure the business has limited its exposure or liability. They do this by stealing from their workers.
Employers steal opportunities through noncompete and non-solicitation agreements. Employers steal the justice system through arbitration agreements that remove judges and juries from the legal process. Employers also steal time with clauses that reduce the period in which employees can bring claims against an employer for its violations of the law.
Unfortunately, many employees sign employment agreements without fully understanding the terms; the majority aren’t lawyers. However, you can bet that most companies had lawyers draft these agreements. Other employees may not even realize they’ve signed these various agreements, the employer having buried them in a mountain of onboarding paperwork and training materials. Sadly, this means many employees may not discover the great heist until it is too late.
Any belief underlying a claim that all employees signing these agreements have a choice, or that all employees have bargaining power when entering into these contracts, is misplaced. In reality, most are fundamentally unconscionable, with employers holding significant power over prospective employees who are desperate for work. Despite this imbalance, courts often uphold these agreements.
There is constant effort by plaintiffs’ attorneys, organizations and agencies designed to protect employee rights, and employee-friendly politicians and leaders to protect the rights of American workers. Despite these efforts, the struggle persists, as big business and the wrong lawmakers continuously place so little value on these rights.
In 2022, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA) amended the Federal Arbitration Act (FAA), granting sexual assault and harassment victims the right to pursue their claims in court, even if they had signed predispute arbitration agreements. However, the fight against arbitration agreements in other areas of employment law continues.
Arbitration agreements are particularly problematic. Arbitrators make their money from the employers who require employees to sign these agreements. When a dispute arises, it is the employer who pays for the arbitration process, including the arbitrator. If this were happening in a court of law, and a party to a dispute paid a judge, it would be considered bribery. Yet, this conflict of interest remains hidden behind the idea that employees “consented” to arbitration, even though the alternative was quite possibly unemployment.
In April 2024, the Federal Trade Commission (FTC) issued a rule to prohibit employers from entering into new noncompete agreements and from enforcing existing noncompetes. The FTC argued that noncompetes restrict workers’ freedom, suppress wages, and often force employees to relocate or leave professions they enjoy.
Of the FTC rule that was set to go into effect in September 2024, FTC Chair Lina M. Khan stated, “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.” However, companies have sued to block the implementation of this rule, leaving the decision in the hands of the courts.
Some states have already protected employees by banning noncompetes, including California, Minnesota, North Dakota, and Oklahoma. In these states, employees enjoy greater protections than under federal law. Employers must compete for valuable workers, pay them what they are worth, and foster opportunities for economic growth.
Where noncompetes are still allowed, plaintiffs’ attorneys continue to fight these restrictive agreements.
Likewise, some employers attempt to reduce the statute of limitations for filing claims. Where the law, as written, may provide an employee with a 300-day, 180-day, or 2-year statute of limitations, employees may unknowingly sign away these deadlines. Consequently, if an employee doesn’t realize they’ve signed an agreement with serious time limitations, they may find they’ve gone to the courthouse too late. Disturbingly, some courts have found these shortened timeframes acceptable, further disadvantaging employees.
New York City took action to protect workers by updating its Administrative Code. This change ensures that any employment agreement provisions attempting to shorten the statutory period for filing claims under the NYC Human Rights Law are unenforceable and void. The city’s amendments demonstrate the positive impact that lawmakers can have on protecting workers and upholding justice.
There are many ways that employers steal rights from employees. Unfortunately, as more employers implement restrictive agreements, employees have fewer job options for avoiding them. When courts and employers fail to protect workers, it falls to lawmakers to step in. Federal, state, and local officials hold the power to prevent injustice and ensure employees retain their rights.
Every lost protection for American workers is another reason to vote. Until stronger legal protections are in place, employees must remain vigilant. If you have signed an employment agreement and need to understand your rights, our attorneys are available for consultation and here to help you navigate the complexities of these contracts.