NJCPA Testifies Against Bill That Would Ban Arbitration
May 10, 2018
On May 10, NJCPA Government Relations Director Jeff Kaszerman testified in Trenton before the New Jersey State Assembly Labor Committee about A1242, a bill that would in effect ban arbitration in all employment contracts. The testimony appears below.
NJ Society of CPAs Urges a No Vote on A1242
TO: Honorable Members of the Assembly Labor Committee
FR: Jeff Kaszerman, Government Relations Director
DT: May 10, 2018
Thank you for permitting us to discuss our concerns with A1242. I’ll make my testimony very brief.
The New Jersey Society of CPAs represents 14,000 CPAs who serve hundreds of thousands of businesses and individuals. Our members and many of the businesses they serve have serious concerns with A1242.
We have no position on the provisions in the bill that prevent employers from concealing details relating to discrimination and harassment claims. However, we are strongly opposed to the provisions that would in effect ban arbitration in all employment contracts.
We believe that arbitration is a faster, fairer and more efficient way for parties to resolve complex disputes. Many of our members – and many employers across New Jersey – utilize arbitration agreements in employment contracts.
Banning arbitration would make employee/employer disputes more expensive, prolong them and would ultimately be less beneficial for employees and employers alike.
We believe it’s a measure that will further erode New Jersey’s ability to attract and retain businesses, many of which can do business in other states that do not ban arbitration agreements. No other states ban arbitration agreements.
Furthermore, and very importantly, we think this this bill is unconstitutional under the Federal Arbitration Act and recent U.S. Supreme Court decisions.
We urge you to vote no on A1242 and thank you for considering our concerns.