Arbitration Agreement with Employer

Arbitration Agreement with Employer: Pros and Cons

An arbitration agreement is a legally binding agreement between an employer and an employee that requires all disputes to be resolved through arbitration rather than through the court system. These types of agreements have become increasingly popular in recent years, as employers seek to avoid costly lawsuits and employees look for an alternative to going to court. In this article, we will explore the pros and cons of an arbitration agreement with your employer.

Pros

1. Cost: Arbitration can be significantly less expensive than going to court. Court cases can take years to resolve and involve costly legal fees, while arbitration can be completed in a matter of months and can be less expensive.

2. Privacy: Unlike public court cases, arbitration proceedings are private and confidential. This means that the details of the dispute will not be made public, which can protect the reputation of both the employer and the employee.

3. Expertise: An arbitrator is typically an expert in the subject matter of the dispute, which can result in a fair and informed decision.

4. Speed: Arbitration can be completed more quickly than a court case, which can save both time and money.

Cons

1. Limited recourse: In arbitration, there is usually no right to appeal the decision, which means that the arbitrator`s decision is final. This can be especially concerning if the decision is not in your favor.

2. Limited discovery: Unlike court cases, which allow for extensive discovery, arbitration proceedings often have limited discovery. This means that you may not have access to all of the evidence you need to prove your case.

3. No jury: In arbitration, there is no jury. The arbitrator makes the final decision, which means that your case may be decided by a single individual rather than a group of your peers.

4. Limited remedies: In arbitration, the remedies available to you may be more limited than in a court case. For example, you may not be able to receive punitive damages or injunctive relief.

In conclusion, an arbitration agreement with your employer can have both pros and cons. While it can be less expensive and faster than going to court, it can also limit your recourse, discovery, and remedies. Ultimately, the decision to sign an arbitration agreement should be carefully considered and discussed with an experienced employment attorney.