IBM Escapes Age Discrimination Claims Through Arbitration Contracts
In
an article for Public Justice by
Tabitha Woodruff, Access to Justice Project Outreach Attorney, she discusses the troubling case of IBM's evasion of age discrimination claims through arbitration contracts, shedding light on a concerning trend in which corporations are shielded from accountability by the legal system.
From 2013 to 2018, IBM laid off over 20,000 employees aged 40 and above, with evidence showing that executives used derogatory terms to refer to older workers. The Equal Employment Opportunity Commission (EEOC) confirmed these allegations, revealing that the majority of those targeted for layoffs were older employees.
To receive severance pay, IBM compelled employees to sign arbitration contracts, which included provisions that:
-
Mandated arbitration instead of court proceedings.
-
Prohibited collective legal action against the company.
-
Imposed strict deadlines for claims.
-
Maintained strict confidentiality of evidence, shielding IBM's actions from public view.
IBM has strategically used these agreements to block claims of age discrimination. Under the Age Discrimination in Employment Act (ADEA), individuals must first file a charge with the EEOC before pursuing legal action. However, IBM convinced the Second Circuit to equate the arbitration request deadline with the deadline for filing an EEOC charge, essentially stripping employees of their rights to seek justice.
Additionally, the Second Circuit allowed IBM to keep crucial evidence of age discrimination practices confidential, citing a non-existent policy under the Federal Arbitration Act. This decision undermines the public's right to access information related to systemic age discrimination.
This case highlights a disturbing reality: arbitration agreements are often used to alter the legal process in favor of corporations, making it harder for individuals to seek justice. The IBM case underscores the need for reform in how arbitration agreements are employed in employment contracts to safeguard the rights of individuals.
Organizations like Public Justice are actively working to combat forced arbitration, advocate for transparency, and protect the right to class actions, all essential steps in the fight to preserve civil rights in the face of corporate power.
We thank Public Justice and their Access to Justice team for all the work they do to fight forced arbitration, court secrecy, and preserve class actions.
Advocate Capital, Inc. is thankful for the opportunity to support Public Justice and its work to keep everyone safe. If you would like to be a financial supporter, click here to be taken to Public Justice's website.
Donna Jones is the President at Advocate Capital, which became a part of Pinnacle in 2019. Ms. Jones is a member of the Board of Directors of Advocate Capital and serves as a member of the Credit Committee. Her responsibilities include education and training of Advocate Capital staff regarding civil litigation, coaching new clients on the fundamentals of Advocate’s online services, as well as its proprietary software application, AdvoTrac®, and all activities related to existing and prospective clients.
