Why Does My Employer Want Me To Sign An Arbitration Agreement

The time given to an employee to review the agreement and you have a difficult decision to make, although it may not matter whether or not you sign the “agreement”. If you continue to work after being informed that a forced arbitration agreement governs your employment, you may be bound by it, even if you refuse to sign it. If you resign – or are fired for refusing to sign the “agreement” – you may have no reason to continue. It depends on the facts of your work, how the “agreement” is presented, and which jurisdiction controls your situation. If you sign it, you`ll likely be stuck with arbitration as the only method of legal recourse for work-related matters. Employees can sometimes find themselves in a tight position when it comes to arbitration agreements. While you technically have the choice not to sign an arbitration agreement that seems more skewed to your employer`s benefit, the employer can simply withdraw their job offer if you refuse to sign it. The public justice system offers the protection of a system that is relatively free from employer influence – protection that is often not granted in forced arbitration. In addition, the judicial system is accessible to the public and its decisions may be appealable. In employment cases, access to discovery is crucial because much of the information you need to prove your case is in the hands of your employer. Unlike arbitration in labour or commercial disputes, instead of a contract that governs the relationship between the parties, there are laws that must be interpreted and applied as they apply to the employment relationship, making these cases more complex and requiring judges who are familiar with the law. These and many other valuable features of the public justice system are limited or not available in the forced arbitration system.

Courts differ in that they require “reciprocity” of the agreement in order to submit claims to arbitration. That is, some courts require, as a condition of performance, that the employer agree to arbitrate any claim it has against the employee and to require the employee to do so with claims against the employer. .

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