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The Corporate Underclass


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I'm not for the over use of contractual labor, but arbitration agreements between companies is a good thing. I know many small businesses (less than 70 employees) that use arbitration and venue clauses to keep themselves out of plaintiff friendly jurisdictions that have no true relevance to the cases in question. It certainly can be abused in the cases of using contractors as employees and stacking it against them.

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8 minutes ago, Massdriver said:

I'm not for the over use of contractual labor, but arbitration agreements between companies is a good thing. I know many small businesses (less than 70 employees) that use arbitration and venue clauses to keep themselves out of plaintiff friendly jurisdictions that have no true relevance to the cases in question. It certainly can be abused in the cases of using contractors as employees and stacking it against them.

No worker should ever be in favor of arbitration. The employer's legal issues are not our problem, just like they don't care about ours.

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13 hours ago, Massdriver said:

I'm not for the over use of contractual labor, but arbitration agreements between companies is a good thing. I know many small businesses (less than 70 employees) that use arbitration and venue clauses to keep themselves out of plaintiff friendly jurisdictions that have no true relevance to the cases in question. It certainly can be abused in the cases of using contractors as employees and stacking it against them.

 

Arbitration is always bad when one side is larger than the other, for a very simple reason: familiarity. A good example is arbitrating insurance claims. If a city has 20 arbitrators and an insurance company wants to use one, who do you think they will pick, the one who rules 50/50, or the one that rules 80/20 in their favour? Arbitrators may deal will thousands of individuals on the one side, but only a few companies on the other side. If they rule in the favour of the companies, they are rewarded with further cases by them. 

 

This is why arbitration is bad. Sure, in a perfect world where they were impartial it might work, but in our real world it doesn't, and I have seen it first-hand.

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55 minutes ago, CitizenVectron said:

 

Arbitration is always bad when one side is larger than the other, for a very simple reason: familiarity. A good example is arbitrating insurance claims. If a city has 20 arbitrators and an insurance company wants to use one, who do you think they will pick, the one who rules 50/50, or the one that rules 80/20 in their favour? Arbitrators may deal will thousands of individuals on the one side, but only a few companies on the other side. If they rule in the favour of the companies, they are rewarded with further cases by them. 

 

This is why arbitration is bad. Sure, in a perfect world where they were impartial it might work, but in our real world it doesn't, and I have seen it first-hand.

I figured that is why we do that. Verizon in our terms of service has it that you have to accept arbitration. You aren't allowed to sue us.

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10 hours ago, CitizenVectron said:

 

Arbitration is always bad when one side is larger than the other, for a very simple reason: familiarity. A good example is arbitrating insurance claims. If a city has 20 arbitrators and an insurance company wants to use one, who do you think they will pick, the one who rules 50/50, or the one that rules 80/20 in their favour? Arbitrators may deal will thousands of individuals on the one side, but only a few companies on the other side. If they rule in the favour of the companies, they are rewarded with further cases by them. 

 

This is why arbitration is bad. Sure, in a perfect world where they were impartial it might work, but in our real world it doesn't, and I have seen it first-hand.

One side isn't always bigger than the other. I've seen arbitration and venue clauses in agreements between similarly sized companies.  There are such thing as insane counties in Texas that rule contrary to legal precedence. They are widely known as being corrupt and plaintiff friendly. Plaintiffs go venue shopping and if need be, sue someone on bullshit charges that has no real relevance to the case just to get venue somewhere very far away from where the incident took place (they will then settle with this "defendant" before it goes to trial, and payments are made on the back end) . I've seen court cases where a small business loses when it wasn't their fault because a jury in a particular county felt that way. It was known in these cases that it would  be overturned upon appeal, but lawyers play a game of settlement vs risking if the Texas Supreme Court will take it up.

 

I acknowledge that it is abused with bigger companies forcing contract workers into bad agreements. I was simply saying not to throw the baby out with the bath water. These clauses protect small companies a lot of the time too, you just don't hear about it on reddit. 

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