Are you subject to arbitration?
Many clients come into the office with employment disputes and they do not realize that they are subject to arbitration agreements. Usually, an employee signs many papers before he or she can start a job. Often these include tax forms and health insurance forms but they can also include an agreement to arbitrate. These agreements vary but typically limit an employee’s right to a jury trial. The best way to find out if you are subject to arbitration is to look at any papers you may have signed when you started your job. If you are required to arbitrate, there will be some documentation of that in your employment agreement.
Arbitration is proceeding--much like a mini-trial—where each side tells its story and then a judge or panel of judges issues an opinion that is legally binding. The exact rules of an arbitration proceeding will depend on the group that performs it. Groups and agencies that perform arbitration include: the American Arbitration Association and the National Arbitration Forum.
Pros and Cons of Arbitration:
Pros:
➢ It is generally considered a more efficient way of resolving conflict—proceedings are often just a few days and decisions are rendered quickly.
➢ It is typically less formal than a judicial proceeding.
➢ An arbitrator often has more flexibility in terms of what evidence he or she will hear and what remedies he or she can impose.
Cons:
➢ Parties need to pay for arbitration (although often employers will pay for arbitration if they require it).
➢ It may be harder to enforce remedies from arbitration.
Many clients worry that arbitration judges will always rule in favor of the employer. However, this is simply not true. Many clients may have a better outcome at arbitration than they would at a jury trial. The best thing to do is discuss your particular situation with an attorney.
