Sterling Jewelers Case Highlights Perils of Arbitration

March 8, 2017, 5:00 AM

Arbitration has a reputation for being faster and less expensive than traditional litigation in court. And it often is. But as the owner of Kay, Jared and Zales jewelry stores and a class of female workers can attest, the process can also have significant drawbacks.

Sterling Jewelers Inc. faces classwide claims alleging women lagged behind men in pay and were less likely to be promoted. The case may be particularly large and complicated, but it shows the disadvantages of arbitrating class discrimination claims, Adam Klein, a plaintiffs’ attorney with Outten & Golden in New York, told Bloomberg BNA March 3. ...

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