Employment Arbitration Agreements

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Arbitration is a form of Alternative dispute resolution in which parties present evidence to an arbitrator or panel and have their case heard. Some arbitration is mandatory and others are voluntary, arbitration may also be binding or nonbinding depending on the way the contract is designed. In employment contracts some employers have begun implementing a mandatory arbitration clause upon hiring of employees. Some feel that the mandatory arbitration clause in employment is unfair to the employees, as this takes away their right to litigate a matter. In Employment Arbitration clauses “any controversy or claim arising out of or relating to this employment application; employment ADR program; employment contract, shall be settled by arbitration …show more content…

The employee is faced with little choice but to accept the clause or lose the job. There are certain requirements that must be met in order for an arbitration clause to be deemed enforceable. First, arbitration agreements may not contain certain “unwaivable” rights, such as minimum wage requirements. Second, arbitration agreements may be unenforceable if they are unconscionable and do not meet four additional criteria for enforceability (Optium employment lawyers).” If an employee has no knowledge that an arbitration clause exists than it should not be enforceable as a contract. Some employers have begun writing the arbitration clause into employee hand books rather than in the application itself. This seems to be a tactic to evade letting the employee know that they have to arbitrate a matter. This seems like it would not create a contract and it should allow for employees to litigate the matter; but the arbitration clause could still be …show more content…

Many people often sign a contract and either never read it or read the entirety later after already signing. Many people sign away rights such as the right to sue without even knowing, until a matter comes up where they need to bring action against another party. One example is when buying a car or signing an employment contract; most will not read the fine print. If we do not want our rights stripped we must learn to protect ourselves and stop needlessly giving up our rights. If one does read an arbitration clause and does not agree to the terms they should speak up and ask to negotiate the terms of the agreement; or if they do not understand the terms ask for clarifications. Stop letting others take your rights based on lack of knowledge or

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