Court upholds arbitration in military discrimination disputes

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In a ruling outside the trucking industry that could, nevertheless, affect the legal relationship between carriers and their employees, the U.S. Court of Appeals for the Fifth Circuit ruled that the Uniformed Services Employment and Reemployment Rights Act (USERRA), which protects the employment rights of members of the armed forces, does not override individual contracts to arbitrate disputes between employers and employees. The decision overturns a district court ruling in the case.

The case involves a former Circuit City employee who claimed that he was terminated in March 2003 solely because of his status as an officer in the Marine Reserves. Even though the employee had agreed to submit such disputes to arbitration, he sued under (USERRA).

For a copy of the appeals court decision, click here.