Employment Contracts with Mandatory Arbitration Clauses

When employing workers, it is critical to understand required arbitration agreements.

A contract agreement that requires arbitration prevents a dispute from getting to court. This implies that any disagreement between employee and employer must be resolved via arbitration. In this procedure, impartial arbiters analyze the facts submitted before deciding on the conclusion and the amount of money payable (if any), also known as the arbitration award.

Arbitration is frequently preferred by companies because it is less costly than going to court. Many firms include an arbitration provision in their employment contracts or a separate Arbitration Agreement.

Employees should read and comprehend the outline of the required arbitration provision in their Employment Agreement, if applicable. It should be noted that the contract cannot preclude an employee from filing a claim with a prosecution agency such as the United States Equal Employment Opportunity Commission. It may, however, prevent workers from filing a claim with an administrative body, such as the state’s Labor Commissioner.