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Employee Arbitration In The Court System

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Executory Arbitration Employment arbitration is on the rise and for good reason. Over the last twenty-to-thirty years there has been an increase in civil litigation. Unfortunately, the court system has not met the demand for increased litigation through additional judicial appointments or the hiring of additional resources to contend with the insurmountable caseloads. Today, the court system has turned to arbitration as an alternate means of resolution, if for anything else, to reduce the cumbersome caseloads traditionally associated with litigation. Moreover, companies today are requiring employees to sign arbitration agreements as a condition of employment. Unlike the court system, employers look at employee arbitration agreements …show more content…

The act essentially aligns executory arbitration with other contract positions and removed the judicial prejudice the process previously received. Historically, this form of arbitration was used primarily in collective-bargaining among unions. However, flourishing in the more favorable legal climate, arbitration, formerly a strictly voluntary process used primarily by arm’s-length disputants, began to be adopted wholesale by large organizations to deal with disputes involving consumers, employees, and other “little guys” (Coltri, 2010). More importantly, arbitration agreements of this type obligate employees to waive any rights to litigation, in the event either party elect to participate in the binding arbitration outlined in the employment agreement. While the employer considers the benefits afforded employment arbitration, many feel the employee is exposed to extreme risk by consenting to such agreements. Employees that are forced to participate in arbitration based on allegations of race, sex and age discrimination are less likely to be properly represented by the law. Based on the previous example, many believe disputes between employers and employees should be litigated, rather than …show more content…

Understanding the advantages and disadvantages of arbitration versus litigation can educate employees preparing to sign employer imposed employment agreements. Two-fold, employers should develop and implement employment agreements that serve the goals and objective of the company while preserving the rights and protection each employee is afforded under the law. The arbitration process involves two parties that are in a dispute, and they use an impartial third party to seek resolution in a private venue. Litigation on the other hand is a formal process, which utilizes a court-of-law in a public venue. The privacy afforded by arbitration is attractive to employers because it can keep the subject of the arbitration sealed. However, if an employee’s rights are being violated, it can be difficult for the employee to address the violations. The speed and cost of arbitration weigh in favor of both parties. Regardless of the situation, it is in the best interest of both parties to resolve the issue as quickly as possible with minimal costs. On the other hand, litigation can take months to schedule and cost significantly more money to hear the case tried in court. Based on these examples, employers will work to develop and implement agreements that focus

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