The litigation process can be costly, time consuming, and frustrating for both employers and employees. Some employers have responded by agreeing to arbitrate employment disputes. Such arbitration clauses, considered to be unenforceable five years ago, have recently gained acceptance by state and federal courts.
Arbitration is a voluntary process, requiring an agreement between the parties to the dispute.
The agreement to arbitrate may be entered into at the time of the dispute, or before the dispute arises. Arbitration involves the presentation of a dispute to an arbitrator, or a panel of arbitrators, instead of a court. The arbitrators are usually experts in the field of employment claims. The arbitrator makes factual and legal determinations, without the use of a jury. An arbitrator's decision is usually binding on all parties, and is usually very difficult to modify or vacate.