Avoiding runaway jury verdicts through arbitration

Jury verdicts in employment cases are reaching levels that have never been seen before. With this backdrop, it’s no surprise that many employers are choosing to avoid the financial and public relations risks of being hit with the next class action or “runaway jury” verdict by requiring their employees to sign arbitration agreements.

Jury verdicts by the numbers

In 2021, approximately $1.17 billion in damages were awarded in just over 1,000 employment cases. In 2022, a jury in California handed down a $464,577,265 verdict against Southern California Edison in favor of two employees alleging harassment and retaliation.

And just last week, final judgment was entered against FedEx in a case where the jury handed down a $366,060,000 verdict in favor of a single worker who convinced a jury the company fired her in retaliation for complaining about race discrimination.

Despite some efforts to chip away at the right to require arbitration of workplace disputes, a series of decisions by the U.S. Supreme Court in recent years has bolstered the right of employers to require employees to submit their claims to binding arbitration on an individual basis.

Pros and cons of arbitration