What is ADR? What is the difference between mediation and arbitration? Contractors are familiar with arbitration of construction contract claims through the American Arbitration Association (AAA) because of the standard arbitration provision of AIA Document A201. What about disputes between employees and employers? Can they be arbitrated? How does mediation fit into the process?
ADR is an acronym for "alternate dispute resolution," a process that includes both arbitration and mediation to resolve disputes in lieu of a trial in court. There are significant differences between arbitration and mediation. Arbitration is a process that results in a final, binding decision by the arbitrator or panel of arbitrators. The decision may be filed in court and enforced as a judgment. It is in lieu of a trial in court before a judge or jury. Mediation is a settlement conference between opposing parties, such as an employee and an employer, using a third party as a mediator. The mediator
