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Record #: O2018-3261   
Type: Ordinance Status: Failed to Pass
Intro date: 4/18/2018 Current Controlling Legislative Body: Committee on Finance
Final action:
Title: Amendment of Municipal Code Section 2-92-320 prohibiting persons or businesses from participating in transactions with City of Chicago if involved in pre-dispute arbitration process or agreement in sexual harassment claim
Sponsors: Burke, Edward M., Laurino, Margaret, Harris, Michelle A., Mitts, Emma, Smith, Michele
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 92 Dept. of Purchases, Contracts & Supplies
Attachments: 1. O2018-3261.pdf
Related files: R2019-362
Committee on Finance


WHEREAS, the City of Chicago is a home rule unit of government pursuant to the 1970 Illinois Constitution, Article VII, Section 6(a); and

WHEREAS, pursuant to its home rule power, the City of Chicago may exercise any power and perform any function relating to its government and affairs including the power to regulate for the protection of the public health, safety, morals, and welfare; and

WHEREAS, arbitration is utilized to settle disputes outside of the court system and many companies have inserted mandatory arbitration clauses into employment contracts to keep disputes confidential and resolve conflicts in an expedited matter; and

WHEREAS, arbitration accomplishes two goals: (1) protecting the privacy and identity of the victim of sexual harassment; and (2) helping corporations hide the details of sexual harassment in the workplace; and

WHEREAS, nearly every company requires as a condition of employment that its employees waive their right to sue in a court of law and instead agree to take any claims against the company to private arbitration; and

WHEREAS, under this condition, the employees are legally bound to remain silent about the sexual harassment they experienced at work and about the arbitration process; and

WHEREAS, forced arbitration has become a standard practice of business that helps manage long-term legal risk,~ensuring that"companies will not be embroiled~in~eostly and protracted lawsuits; and

WHEREAS, Uber and IBM are prime examples that forced arbitration led to a long-term operating risk where discrimination, harassment, and retaliation disputes through forced arbitration proceedings became culturally entrenched and enabled sexual harassers to move to firms and continue harassing; and

WHEREAS, recently, Microsoft took the lead to stop requiring forced arbitration in cases of sexual harassment; and

WHEREAS, United States Representative Cheri Bustos of Illinois and United States Senator Kirsten Gillibrand ...

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