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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.
Employment Arbitration Agreement an agreement between an employer and an employee, sometimes signed prior to employment and in some instances after employment has begun, in which both parties agree to submit any employment-related disputes to arbitration, rather than to the traditional court process.
Under the Federal Arbitration Act, arbitration agreements involving foreign commerce or interstate commerce are considered valid, irrevocable, and enforceable, except when there are legal or equitable grounds to revoke the contract. Under the FAA, an arbitrator's decision will be binding.
Under the Federal Arbitration Act, agreements to resolve disputes through arbitration are as enforceable as any other contracts.
Bad. This question is often debated among attorneys, judges and arbitrators. Judges like arbitration because they're chronically overworked.
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.
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.
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.
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.