What Is An Arbitration Agreement?

An arbitration agreement is an agreement where the parties agree that if there is any dispute between them, they will have that dispute decided by an arbitrator instead of a court. It’s a way to bypass the judicial system and take that dispute directly to a neutral third-party arbitrator and that arbitrator’s decision is going to be binding on the parties.

Can I Still Sue An Employer If I Signed An Arbitration Agreement?

Whether you can sue when you’ve signed an arbitration agreement depends on what the arbitration agreement covers. If the claim that you potentially have is encompassed within that arbitration agreement and you sue in a court, your employer can ask the judge to have the case dismissed or sent to arbitration. There are also some cases where the judge could decide that the arbitration agreement was not enforceable from the beginning. Assuming that it is an enforceable agreement and the claims fall within that agreement, any lawsuit would likely then be transferred to an arbitration proceeding.

How Do I Know If I Should Sign An Arbitration Agreement Or Not?

One of the initial things to look into when deciding whether to sign an agreement is what the arbitration agreement actually covers and what authority the arbitrator will have in deciding any disputes between the parties. Many individuals think arbitration is not enforceable or not binding. They don’t have a full understanding of what these agreements really mean.

Can An Employer Force Me To Sign An Arbitration Agreement?

An employer cannot force an employee to sign an arbitration agreement. However, if an employee refuses to sign one of these agreements, the employer can take disciplinary action, including and up to termination. There is no protection for an employee if they refuse to sign an arbitration agreement.

Are Arbitration Agreements Legally Binding?

Generally, arbitration agreements are legally binding and they are becoming more common. Most courts tend to side with arbitration even if there is a legitimate dispute about whether that claim should be sent to arbitration.

How Long Does It Generally Take To Get A Decision From Arbitration?

One of the advantages of arbitration is that it is often quicker to get a decision through arbitration than it is through the court system. In our personal practice, we’ve seen that from the time someone files a claim in arbitration to the final hearing, it typically takes 9 to 12 months to have a final hearing. Once the hearing takes place, it might be another two to three months before the arbitrator makes his or her decision. In some situations, it’s quicker than a court and in other situations, it’s about the same amount of time.

Can A Party Still Sue After Binding Arbitration?

If a court has determined that the claim is subject to arbitration and there are not any other issues with the arbitration itself, then any kind of lawsuit is going to be stayed pending the resolution of that arbitration. Technically, they could sue, but the court is not going to go forward with any lawsuits until the arbitration has been completed.

What Happens If I Do Not Sign My Employer’s Arbitration Agreement?

In an at-will employment state, if there is not an employment agreement and the relationship is truly at will, an employer can decide to terminate an employee who refuses to sign an arbitration agreement.

Do I Need To Have An Attorney To Go To Arbitration?

Like any other legal matter, it is certainly advisable to have an attorney in arbitration because you’re going to be dealing with rules of evidence, rules of procedure, substantive law, and the whole strategy of putting together a case. This is not an informal process, like a Justice of the Peace Court. If it’s a valuable claim that the employee or the employer is defending, it’s always wise to have an attorney available to advise in that situation.

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