Rare Exception to FAA Kills Arbitration Clause

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The Federal Arbitration Act (FAA) enforces certain arbitration agreements involving federal law, including some employment disputes and claims against employers under the Employee Retirement Income Security Act of 1974 (ERISA). But is an arbitration agreement that prohibits an individual from seeking relief provided by federal statute still enforceable? The U.S. 7th Circuit Court of Appeals (which covers Wisconsin employers) recently addressed the issue.

FAA and ERISA

Congress enacted the FAA in 1925. The federal law enforces certain arbitration agreements entered into between parties.

ERISA is a federal law that sets minimum standards for most voluntarily established retirement and health

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