The Clause That Waives Your Right to Sue

Mandatory arbitration and class-action waivers are in almost every consumer and employment contract now. Know what you are giving up.

A mandatory arbitration clause moves any dispute out of court and into a private proceeding. A class-action waiver stops you from joining others who have the same complaint.

Together they change the economics of a small claim. A dispute worth a few thousand dollars is rarely worth arbitrating alone, and that is the point of pairing them.

Look at who selects the arbitrator, who pays the filing fees, and where the hearing takes place. A clause that sets the venue across the country is a cost barrier by design.