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Many experts have concluded that employees who arbitrate their claims obtain results that, on average, are as good or better than the results obtained by employees who litigate.
Bad. This question is often debated among attorneys, judges and arbitrators. Judges like arbitration because they're chronically overworked.
Mandatory arbitration is a contractual provision found in many employment contracts. It allows employees and employers to resolve disputes swiftly and cost-effectively. However, mandatory arbitration also contractually prevents workers from pursuing resolutions through the courts.
Under the Federal Arbitration Act, agreements to resolve disputes through arbitration are as enforceable as any other contracts.
If your employment contract includes an employment arbitration clause, then it means you agreed not to pursue any legal action against your employer in court. Instead, any disputes that you have with your employer must be settled through a process known as arbitration.
Arbitration is considered more efficient, cheaper, and faster by employers, but often employee rights are left behind. Arbitrators often side with employees, and may not take your rights as seriously as would a California court.
You cannot sue or be sued after you sign an arbitration agreement. If the original contract included an arbitration clause, it means that both parties agreed not to pursue legal action in court against the other. Any disputes that arise will have to be settled through arbitration.
In such cases, arbitration will almost always favor the defendant employer. Nearly every attorney who represents working people in employment cases will agree that arbitration agreements are not the best choice for employee plaintiffs.
Employers can cite several factors suggesting that arbitration is a fair way to resolve employment disputes: Arbitration has been widely used to resolve disputes in unionized workforces for more than 70 years. Arbitration is often faster than litigation. Employees may not realize that litigation often takes years.
"Arbitration agreement" is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.