10 Compelling Reasons for Employment Arbitration
There may be no single, more efficient step an employer can take to manage litigation risk from its workforce than a properly administered mandatory employee arbitration program. An employee arbitration program is a powerful tool for employers to avoid risk, control costs, and achieve effective dispute resolution. Although there are some tradeoffs, the benefits of an arbitration program for employers are numerous and significant.
Fundamentally, arbitration is “court by contract.” The parties, in this case, employer and employee, enter into a contract that sets the terms of how they will resolve disputes. Exactly which disputes, who will decide the disputes, and the rules implemented to decide covered disputes are all set forth in the arbitration agreement.
The arbitration agreement will also govern jurisdiction, parameters of discovery, and the applicable state or federal law, among other provisions upon which the parties agree.
In this series of articles, we’ll explore 10 compelling reasons for employment arbitration to demonstrate the pros, while considering some caveats, of this strategic litigation avoidance device.