In many instances, records are not available for inspection until the day of the arbitration hearing, This makes it difficult to detect whether they are accurate and complete. And, it is often up the arbitrator's discretion whether to grant an adjournment for the purposes of reviewing such records. Such requests may be refused. Sexual harassment and sex discrimination issues are currently being resolved in arbitration as well as by litigation. Often an employee prefers that her matter not be resolved through arbitration because punitive and other special damages are not granted in an arbitrator's award in many states.
Courts favor resolving cases through arbitration when agreed beforehand by the parties.
Thus, it is essential to understand the ramifications of signing any employment agreement or contract containing an arbitration clause. Commencing the hearing is a relatively simple matter once arbitration has been selected as the method of resolving a dispute. A party or her lawyer sends a notice called a Demand for Arbitration to the adversary. See page 278 for an example of this notice. Copies of the demand are sent to the American Arbitration Association, along with the appropriate administrative fee.