An employee arbitration agreement is a contract between an employer and an employee that outlines how disputes between them will be resolved. Instead of going to court, the parties agree to submit their issues to a neutral third party, known as an arbitrator.
Arbitration is a form of alternative dispute resolution that is often quicker and less expensive than going to court. It can be a good option for resolving employment disputes because it is private, meaning that the details of the dispute are not made public.
The arbitration agreement typically includes the following provisions:
– Scope of the agreement: The agreement will state the types of disputes that are covered by the agreement. Generally, this includes claims related to employment, such as discrimination, harassment, and wrongful termination.
– Selection of the arbitrator: The agreement will state how the arbitrator will be selected. Most agreements provide for the parties to choose the arbitrator jointly, but if they cannot agree, they may have to turn to an arbitration service to choose one.
– Rules of the arbitration: The agreement will specify the rules that will govern the arbitration, such as the number of arbitrators, the location of the arbitration, and the process for presenting evidence.
– Award: The agreement will outline the process for the arbitrator to issue a decision, known as an award. The award is typically final and binding on the parties and cannot be appealed.
There are some potential drawbacks to employee arbitration agreements. For example, employees may feel that they are giving up their right to a trial by jury, and they may be concerned about the fairness of the arbitration process. Additionally, some agreements may contain provisions that limit the rights of the employee, such as clauses that waive the right to file a class action lawsuit.
Overall, an employee arbitration agreement can be an effective way to resolve disputes between an employer and an employee. However, it is important to carefully consider the terms of the agreement before signing, and to consult with an attorney if you have any questions or concerns.