Are employee arbitration agreements enforceable?
Is arbitration legal? Yes. The Federal Arbitration Act, or FAA, was passed in 1925 in response to a variety of court decisions that held arbitration agreements unenforceable. This law provides that arbitration agreements are generally valid and enforceable.
What happens if you sign an arbitration agreement with your employer?
Many employers ask employees to sign arbitration agreements, in which they give up their right to sue in court over job-related issues such as wrongful termination, breach of contract, and discrimination.
How is employee mediation used in the workplace?
In recent years, managers have begun to adopt the proven skills of professional mediators and arbitrators in the form of employee mediation techniques to resolve and manage workplace conflict.
Can a court strike down an arbitration agreement?
For example, courts have questioned or struck down arbitration agreements that require employees to pick up too much of the cost, limit the damages available, put significant restrictions on the employee’s right to present evidence, and so on. These decisions vary from state to state, however.
Who is the arbitrator in an employment arbitration case?
The arbitrator is typically a lawyer or judge who has experience in employment law and who offers his or her services for a fee. The rules in arbitration are more relaxed than in court, and there is no jury. Once both sides have presented their evidence, the arbitrator makes a decision. That decision is final, with almost no right to appeal.
What happens if I sign an arbitration agreement with my employer?
When you sign a binding arbitration agreement, you are giving up your right to go to court. If you have claims against your employer that are covered by the agreement, you must take them to arbitration instead.
Why do employers want disputes heard in arbitration?
Employers typically want disputes heard in arbitration because they believe employees don’t fare as well there. Arbitrators, who are typically retired judges or business people, are thought to be less likely to be swayed by emotion or sympathy than jurors might be, and therefore less likely to award huge damages for things like pain and suffering.
For example, courts have questioned or struck down arbitration agreements that require employees to pick up too much of the cost, limit the damages available, put significant restrictions on the employee’s right to present evidence, and so on. These decisions vary from state to state, however.
What should be included in an arbitration agreement?
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.