What is an arbitration agreement for employment?

• Wrongful employee termination

• Discrimination

• Breach of contract

Arbitration agreements favor the employer over the employee. Giving up rights to a lawsuit against an employer might seem trivial when just starting a new job. However, it can profoundly affect whether or not you win a legal case in the event you choose to pursue legal claims against your employer.

Arbitration proceedings are heard and decided on by a private citizen, typically a retired judge, who is compensated by one or both sides of the arbitration case to look at the evidence, listen to relevant witnesses, and ultimately make a ruling in favor of the employee or employer.

Arbitration also differs from traditional court-based lawsuits in that it limits the information each party can obtain from the other.

In employment cases, this usually negatively impacts the employee rather than the employer. This is because the employer usually possesses the most information and related documents relating to the employee's case.

Unlike most traditional court cases, arbitration can not be appealed, making the awards more final than traditional court verdicts.

There are two pros to arbitration, which include:

• Arbitrations are less formal than traditional court trials, making it a somewhat easier process for employees that are not familiar with litigation.

• Arbitration cases are heard and decided much faster than traditional court cases, which can sometimes take several years to complete.