Arbitrators are generally retired judges or lawyers, and are thought to be more likely to side with business and more likely to set their emotions aside and look only at the facts. Is this true? All the subjective stuff is anyone's guess -- certainly every employment lawyer can tell you about a stingy juror who didn't want their client to get a red cent.
Some research shows that employees and former employees tend to win more often in arbitration than in court. And, while some studies show that employees win larger awards in court, others show that employee awards in arbitration are comparable to those in litigation. Despite this research, however, the perception remains that employers will fare better in arbitration.
Which is likely why yours want you to agree to bring any disputes in that forum. Although it's possible your employer has nefarious plans for you, it's much more likely to simply be covering its legal bases, just in case. Before you sign the agreement, read it carefully -- and check out the advice in our article Signing an Arbitration Agreement With Your Employer.
There are certain provisions in these agreements that courts have struck down as unfair to employees, and a few items you might want to at least try to negotiate before you sign on the dotted line. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. Why does my employer want me to sign an arbitration agreement?
An arbitration agreement waives your right to sue your employer in court. Email Email id Click to edit. Email No Content This field is required. Job role Click to edit. Job role No Content This field is required. Job title.
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Office postcode No Content This field is required. Public Law. Legal Categories. Discover LexisPSL. News 4. Practice notes 3. Meet the Editors. Employers are increasingly asking workers to give up their rights through arbitration agreements, so be careful what you sign. The Disadvantages of Arbitration You may wonder why you should care where your claims get heard, as long as they are heard somewhere, whether in an arbitration proceeding or a court of law.
The Advantages of Arbitration An arbitration does have some advantages over a court trial. Read All Documents Carefully Employees often sign arbitration agreements unintentionally. The Risks of Refusing to Sign If your employer asks you to sign an arbitration agreement, you can refuse, but that may put your job in jeopardy. Making the Agreement Fair If your employer won't let you outright refuse to sign, it may allow you to negotiate certain terms of the agreement to make it more fair to you.
Choice of arbitrator. You should get as much say in choosing the arbitrator as the employer. Given the power of the arbitrator, and given the fact that you probably won't get to appeal the arbitration decision, you will want to have rights equal to those of your employer in selecting the arbitrator.
You and the employer should have the right to reject at least one arbitrator without having to give a reason. Disclosure of information. A potential arbitrator should have to disclose information about his or her business and personal interests so you can make sure that the arbitrator is not biased in favor of the employer.
For example, the arbitrator should not be someone who is a stockholder in the company. You and the employer should have the right to reject any arbitrator who has a conflict of interest. Costs of arbitration. Because the employer is the one who wants to use arbitration -- something that costs money -- the employer should have to pay for it. Remedies available. Make sure that you can receive through arbitration all of the remedies that you would have gotten if you had filed your claim in a court of law.
For example, the agreement should not prohibit you from seeking punitive damages or damages for emotional distress. Attorney representation. You should have the right to be represented by an attorney throughout the arbitration process. You Can Still Use Government Agencies to Fight Discrimination If you sign an arbitration agreement and your employer discriminates against you, you can still complain to a government agency , such as the federal Equal Employment Opportunity Commission EEOC -- and the agency can decide to sue the employer in court on your behalf.
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