However, employers that mandate arbitration often include class-action waivers in their employment contracts. This prevents workers from litigating their cases jointly, and instead requires them each to proceed with their relatively small individual claims through arbitration.
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
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.
1 In the context of arbitration, waiver occurs when a party consciously and intentionally gives up its right to arbitrate a particular dispute, thereby choosing litigation as the preferred method of dispute resolution.
See 9 U.S.C. § 1. In Concepcion, the U.S. Supreme Court ruled that class action waivers in arbitration agreements are enforceable.
As a general rule, only strong evidence of duress or fraud are sufficient to invalidate an arbitration clause.
If you are in a contract containing an arbitration clause naming the AAA Rules, you may still be able to bring your dispute in small claims court instead of arbitration, as long as the claim falls within the jurisdiction requirements of the small claims court.
Arbitration agreements require that persons who signed them resolve any disputes by binding arbitration, rather than in court before a judge and/or jury. What is binding arbitration? Binding arbitration involves the submission of a dispute to a neutral party who hears the case and makes a decision.