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Employment Arbitration: It Takes Two to Tango

By Paul Snitzer and Christopher Durham
November 24, 2009

Many employers have recently developed and implemented employment arbitration programs. These programs are set forth in arbitration agreements with employees, and require employees to arbitrate, as opposed to litigate in court, disputes arising out of the employee's work with the employer. Countless employers have promulgated arbitration agreements to take advantage of the perceived benefits of arbitrating employment-related claims, including the absence of a jury, the efficiency of resolving claims in an arbitral forum and the reduced or eliminated publicity resulting from employment claims.

Pitfalls

There are, however, pitfalls awaiting employers who seek to implement employment arbitration policies that may prevent them from later enforcing those employment arbitration agreements. One such hazard to which employers fall victim is the erroneous assumption that a binding arbitration policy is no different from any other employment policy, and, therefore, can be unilaterally imposed on employees without their express agreement or even their knowledge. To the contrary, however, an employee who agrees to arbitrate employment-related disputes sacrifices important legal rights to which he or she is otherwise entitled, i.e., the right to file suit in federal and state court under a wide range of employment-related statutes.

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