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Why Use Employee Arbitration Provisions?

On Behalf of | Aug 6, 2019 | Firm News |


Are you considering having your employees sign an arbitration clause? With arbitration provisions, the employee agrees to resolve any outstanding disputes through the use of arbitration, not through standard litigation.  If you’re wondering whether or not these provisions are worth it, here’s a look at some of the potential benefits to using arbitration clauses.

Using an Arbitrator Knowledgeable in Employment Law

With litigation, the judge is likely to have little to no knowledge of employment law.  With arbitration, you will have an arbitrator with familiarity with the employment laws and better positioned to understand the facts, the law and to get the outcome right.

There are No Juries

The absence of a jury is a welcome relief for many employers. With a jury, you are really rolling the dice on what the outcome is going to be, even when you are fully prepared, and your Florida employment law attorney presents the best possible case. Relying on an arbitrator is a welcome change for some employers. The belief is that arbitrators are more reasonable and tend to be more predictable with their awards. The case’s outcome relies more on the merits of your case rather than on a group of strangers that may change their mind on a whim.

More Privacy with Arbitration

With a regular court case, it’s public record. This means anyone can research the case and request copies of the transcripts. Private information about your business could get out, media outlets may pick it up, or you could have customers boycotting you. With arbitration, there are no public records or filings, and that also means no media access. The results of the arbitration are also confidential.  This is a relief for employees as well who are concerned with other possible employers learning that the employee sued his/her former employer.

Cheaper than Litigation

Another important reason to consider employee arbitration provisions is the expense. Arbitration is less expensive than litigation. Arbitration relies on a shorter discovery period and fewer hearings. This can reduce your litigation costs significantly. Arbitration is often around two-thirds less expensive than standard litigation.

Faster and More Efficient Resolution

With arbitration, there is no lengthy discovery process and jury selection. There is no gambling with a jury, so the possible outcomes are narrowed down. Some employers even include a more detailed provision that requires the employee to do certain things before they can start the arbitration hearing, which means some cases might even resolve before the hearing date. When it comes to efficiency, arbitration will take less time, often reaching an agreement within only a few months rather than years.

Arbitration’s are Less Formal

Another benefit to arbitration’s is the fact that all hearings are usually less formal. You are still bound by the laws of the state and the process, but it’s a much less strict process. This can help keep things from turning ugly, hopefully preserving the employee and employer’s relationship.

Contact a Florida Employment Law Attorney

If you have questions about arbitration provisions, it’s important to speak with a knowledgeable West Palm Beach labor and employment attorney. Contact Pincus & Currier LLP today at 561-868-1340 to schedule an initial consultation.