Why Am I Being Asked To Sign An Arbitration Agreement

Carefully note any discussions you have with your employer about amending or not signing the agreement. In this situation, it is important to consult a lawyer to determine what rights you may have. Depending on the issue in question and the terms of the agreement, you may need to make a quick strategic decision as to whether to proceed with the applicable applied arbitration or challenge the proceeding in court. There can be deadlines that approach quickly that affect your legal strategy, so it`s important to consult a lawyer immediately to get the widest range of options for yourself. Most arbitral awards are enforceable, which means that once the arbitrator has made a decision, you cannot appeal and request that your case be heard again, either by another arbitrator or by the courts. However, if you are an employee who has signed an arbitration agreement with your employer and you feel discriminated against, the arbitration agreement does not deprive you of the right to go to a government agency such as the Equal Employment Opportunity Commission (EEOC). Filing a charge of discrimination triggers an investigation by the EEOC and, depending on the findings, the agency may take legal action on your behalf. When you sign an arbitration agreement, most of the work-related disputes you raise are not decided by a jury of your colleagues, but before an independent arbitrator, who is usually hired by the employer and paid in full. Limitations of the remedy that the employee can obtain in arbitration before a public court, arbitration is an alternative means of dispute resolution that provides the parties involved with a resolution of a dispute without having to go through the courts. Instead of having your case heard before a judge, your dispute will be heard by an arbitrator at an arbitration hearing, which is usually much more informal than a court hearing and usually takes place in a conference room. The procedures are also less stringent than standard court procedures.

In general, courts have been very critical of any limitation on remedies that would otherwise be available in a public court without the arbitration agreement. As a result, most applied arbitration agreements now explicitly state that there is no limit to the claims or damages that the employee may receive. Any limitation on the remedies that would have been available to the employee in court significantly increases the likelihood that the agreement will be struck down by the courts as unenforceable. That`s why it`s important: if you`ve been cheated on your salary, fired, injured, or even convicted in retaliation for the racial discrimination claim, arbitration agreements only allow one person – often a retired judge – to hear both sides and make a binding decision on their own. Your employer can usually choose who it is and has probably already hired them. Arbitrators receive at least $40,000 to $60,000 for their services. Substantive scrutiny takes into account the fairness of the proceedings under the agreement relative to what an employee would otherwise have in the public justice system. Does the arbitration provision eliminate certain claims that could have been made in court, such as .B. the request for a penalty that could be provided under the law for late payments? Or does the arbitration provision eliminate remedies that might otherwise be available? These and other similar issues constitute a restriction on the employee`s substantive rights and can be unscrupulous in terms of content. .