What Is Employment Arbitration?
Employment arbitration is a process for resolving workplace disputes outside of traditional court litigation. In arbitration, an arbitrator or panel reviews the facts and arguments presented by the employer and employee and makes a decision about the dispute. Employment arbitration may address issues such as wrongful termination, discrimination, harassment, wage disputes, or breaches of an employment agreement.
Why Is Employment Arbitration Important?
Employment arbitration can provide employers and employees with an alternative way to resolve workplace disputes. Arbitration may offer a more streamlined process than litigation, although the costs, procedures, and legal implications can vary. HR leaders should understand how arbitration agreements are structured and how applicable laws affect their use and enforceability.
Employment Arbitration Agreements
An employment arbitration agreement is a contract in which an employee and employer agree to resolve certain disputes through arbitration rather than through a court proceeding. These agreements may be included in employment contracts or presented separately. Employers should clearly communicate the terms of any arbitration agreement and work with qualified legal counsel to ensure agreements comply with applicable federal and state requirements.
