What is arbitration?
Arbitration is a way of resolving a dispute outside of court
What is an arbitration agreement?
In the employment setting, an arbitration agreement is a contract between you and your employer stating that you agree to resolve any claim or controversy that arises out of the scope or termination of your employment in arbitration rather than in court
That means you are waiving your right to a jury trial
How will I know if my employer has an arbitration agreement?
An arbitration agreement may present itself in many ways: in the employee handbook, in a clause in your employment application, offer letter, or new-hire documents, or on electronic forms provided by your employer
What should I do if my employer presents me with an arbitration agreement?
Read the terms
Ask questions if you do not understand certain terms or the implications of signing
Check to see if you can opt out or refuse to sign
If you feel there are unfair conditions, ask to negotiate them
If you are still concerned, review the documents with an attorney
Am I required to sign or can I refuse?
Some employers require you to agree to arbitration as a condition of your employment and may rescind their job offer if you do not sign
Others may automatically make arbitration a condition of your employment unless you opt out
- In these situations, you must take specific steps as provided by your employer to opt out
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