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Employment Lawyers Leery of Bill Banning NDAs, Arbitration

Publisher: Massachusetts Lawyers Weekly
March 1, 2018

John McLafferty was quoted in an article, "Employment Lawyers Leery of Bill Banning NDAs, Arbitration," published by Massachusetts Lawyers Weekly. The article focuses on a bill that would purportedly ban non-disclosure agreements and mandatory arbitration clauses in employment contracts. As noted in the article, McLafferty told Massachusetts Lawyers Weekly that most employers would not be in favor of any limitation on the use of arbitration to resolve disputes. More importantly, he said, it's unlikely the bill would pass muster under U.S. Supreme Court precedents regarding the reach of the Federal Arbitration Act. "I don't see blanket bans on mandatory arbitration agreements surviving a challenge under the FAA," said McLafferty. Further, he commented that some employees actually would prefer the entire process be kept confidential. "You may have an employee who has allegations of sexual harassment that they just don't want to make public because they're concerned it may affect their ability to find another job or work in the industry," noted McLafferty. He added that a law requiring disclosure of the terms of a settlement could discourage employers from settling cases in the first place because of the concern that they may be viewed as an "easy mark" for copycat claims. "It could also potentially result in lower settlements because, if you know that number is going to become public, you may think twice about settling and putting a large number out there," he said.


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