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ARTICLE · 03 OCTOBER 2002

New Opportunities for Mandatory Arbitration

United StatesEmployment and HR
Rex Berry
Rex Berry

Over the past few years, many employers have adopted programs that require their employees to agree, as a condition of employment, to arbitrate employment disputes, rather than file lawsuits over those disputes. The advantages to both parties are many. Disputes can be resolved in arbitration in far less time, and with far less expense than usually is incurred in litigation. For employers especially, the chance to have disputes heard by an experienced arbitrator trained in the law is far more attractive than having a jury decide disputes. Stories of runaway jury verdicts costing employers millions of dollars are legendary, and have frightened many employers into settling an otherwise strong case, just to avoid that risk.

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