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An arbitration agreement between an employer and an employee requires the parties to allow an impartial third party (or a panel of neutral decision-makers) to resolve disputes arising between them instead of filing a traditional lawsuit at the courthouse. Typically, an employer requires an employee to sign an arbitration agreement at the outset of the employment relationship, and the employer drafts the agreement broadly enough to require arbitration of all claims that arise out of the employment relationship.
Arbitration can be less expensive and faster than litigation. Further, those who favor arbitration believe arbitration achieves fairer results since a trained arbitrator decides the verdict rather than a potentially emotional jury. Those who criticize arbitration argue that it deprives an employee of a “day in court.”
To begin the arbitration process, a party provides a filing fee to the arbitrator or the arbitration service (such as the American Arbitration Association), and the parties select an arbitrator. Following a brief discovery process, the arbitrator holds a hearing. During this hearing, each party presents evidence. Within a short time following the hearing, the arbitrator issues a decision. This decision is final, and it may be appealed on few grounds.
To speak with an employment law attorney regarding arbitration, contact the employment law attorneys at Clouse Dunn Khoshbin LLP at info@cdklawyers.com.
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