Unless it is carefully crafted, the arbitration agreement may expand, instead of limit, the employees ability to challenge employer actions. However, a broad scope arbitration agreement may change the nature of the employer-employee relationship. Otherwise, the Court reasoned, there would be nothing to arbitrate. Under the circumstances, employers should ensure any arbitration agreement is narrowly drawn to limit the scope of issues subject to arbitration. If an arbitrator makes a bad decision, the employer has little chance of getting the decision changed .
Arbitration is final and binding on both parties.
There are few grounds for appeal of an arbitration award and, even if grounds are present, appeals are seldom successful. Unlike judges, arbitrators are not obligated to follow strict legal rules or even explain their decisions. Unless the arbitration agreement has clear restrictions, arbitrators may consider any issue or remedy the employee might demand. These can include such things as punitive damages, attorney fees, and damages for negligent supervision, assault and battery, or sexual harassment. If the arbitrator is not experienced in the specific areas in question, he or she may misapply the law governing these legal claims, and the employer cannot rely on an appeal to correct the error.