BorgWarner

Since 1991, Borg-Warner Protective Services Corporation has required its employees to sign, as a condition of employment, some form of an arbitration agreement or, as the company calls it, a “Pre-Dispute Resolution Agreement.” A typical version of the agreement provides that if the employee brings suit on an employment related claim, Borg-Warner may insist on arbitration pursuant to the Federal Arbitration Act, 9 U.S.C. 1 et seq., before a single arbitrator of “all matters directly or indirectly related” to the individual’s recruitment, employment and termination, including “claims involving laws against discrimination ….” The Equal Employment Opportunity Commission considers such agreements unenforceable in regard to claims arising under Title VII of the Civil Rights Act of 1964, and has spelled out its position in a “Policy Statement on Mandatory Binding Arbitration of Employment Disputes as a Condition of Employment” (July 10, 1997) (“Policy Statement”). -BorgWarner v. Equal Employment Opportunity Commission (2001)

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