What is an employee arbitration agreement?
An employee arbitration agreement is a clause in an employment contract where the parties agree to resolve any disputes through arbitration rather than litigation. This can streamline the resolution process and keep matters confidential. During the hiring process, the employer may present this agreement to ensure that any conflicts, such as those related to trade secrets or the actions of employees, are handled in a way that might be more efficient and private than court proceedings. Like other contractual provisions, it should be carefully drafted, and using an employment contract template that includes such a clause may be advisable.