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Why Employers Should Enforce Arbitration Agreements

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As times are changing, many employers are now utilizing the need for including employment arbitration agreements. Furthermore, arbitration agreements are everywhere nowadays and more than likely we have all signed one without actually realizing it. Hence, they see so many advantages by implementing arbitration clauses. So in response to the question, my answer would be yes, I would advise employers to utilize arbitration agreements because they generally result in being less costly in terms of having to prepare and file documents, more relaxed versus being in an uneasy setting, quicker to dispute, and less messier than taking issues to court. All the more, arbitration may essentially take weeks or months to reconcile as to where a court …show more content…

Nowadays, more and more, individualized employers are implementing within their employment contracts to contain arbitration stipulations. Likewise, employers are seeing the benefit of having arbitration agreements because they are less time consuming and way more cost effective than having the case resolved through the courts. Additionally, despite the fact that arbitration is performed in accordance to rules and regulations, they are less burdensome and demanding than those of a court trial. Equally important, the right of appeal from an arbitrator's decision is restricted, offering employers a heightened sense of confidence and sureness. Appeals from judicial decisions can become very drawn out and expensive. Employers also value the privacy that arbitration provides. Unlike court trials, arbitration proceedings and arbitrators' decisions are not normally made public. Arbitration clauses can be incredibly beneficial in the employment context where individual claims often tend to cost more to litigate than they ultimately are worth in damages. According to Pine (2014) it is indicated that, the enactment of the Federal Arbitration Act (FAA) reversal of the long lived judicial hostility that existed towards arbitration agreements, and to encourage the use of arbitration as a means of reducing the excessive costs and delays commonly associated with litigation. As a result of the enactment of the FAA and numerous Supreme Court cases interpreting the Act, this country has come to embrace a strong federal policy which favors arbitration. This policy requires arbitration agreements, including employment arbitration agreements, to be enforced according to their terms in the same manner as other contracts. Employers, faced with new statutes defining minimum employment standards and expanding the rights of

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The employer alleged that the arbitrator went beyond his authority in shielding the award. The trial court settled the award, and the Court of Appeals held that the employer could not justify its complaints citing the Hall Street opinion. 3. Issue for the court to decide: Does policies include an arbitration clause? In arbitration is that going to continue be

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Business Employees v. Missouri, 374 US 74, 82 (1963) (finding that the right to strike is at the “core” of collective bargaining); NLRB v. Erie Resistor Corp., 373 US 221, 234 (1963) (finding that the strike is “an economic weapon which in great measure implements and supports the principles of the collective bargaining system.”). See AIDT & TZANNATOS, supra note 15, at 56–58; Zimmer, supra note 5851, at 1547 (citing the auto industry as an example where this practice worked in the past). See id.; see also Fried, supra note 62, at 1030 (noting that with government protection or regulation employers could pass union premiums on to consumers). See Renae Broderick &and Barry Gerhart, Non-Wage Compensation, in David Lewin, Daniel J.B. Mitchell, and Mahmood A. Zaidi, eds., 3 THE HUMAN RESOURCE MANAGEMENT HANDBOOK, PART III, 95-135 145–73 (David Lewin, Daniel J.B. Mitchell & Mahmood A. Zaidi, eds., 1997); see also FREEMAN & MEDOFF, supra note 11, at 181–84 (concluding that unions lower profitability and that the benefits of unionism do not offset union

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The use of arbitration by the companies is the latest frontier in a legal strategy orchestrated by corporations in recent years. By inserting arbitration clauses into the fine print of consumer contracts, they have found a way to block access to the courts and ban class-action lawsuits, the only realistic way to bring a case against a deep-pocketed corporation. Their strategy traces to a pair of Supreme Court decisions in 2011 and 2013 that enshrined the use of class-action bans in arbitration

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Necole Cox Thomas Business Law I Professor Baimes October 1, 2016 1. Explain why many companies prefer arbitration and how arbitration may affect employee rights. Arbitration is a cheaper and more convenient way to settle disputes between an employee and an employer. They can minimize lawsuits and reduce bad press publicly and internally. They also win most of the times through arbitration compared to litigation.

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She uses an example of the Department of Education which do not allow students to abuse the loophole. She explains, “The Department of Education prohibit the use of pre-dispute mandatory arbitration agreement by for-profit schools. “Therefore, it would apply the same for Federal Trade Commission, which should not allow the IoT’s company to use “pre-dispute mandatory arbitration agreement.” This gives her suggestion a strong support because it based on the regulation that already exist. By using comparison and contrast, the author promotes her

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This is one of the biggest points of contention for mandatory arbitration agreements within employment law. This contention arises from the public policy concern that employees will be forced to agree to the arbitration procedure or seek employment elsewhere. In a society where employment acts as a sense of identity, and arbitration agreements are an industry standard amongst a majority of employers, public policy argues that employees lack the bargaining power to deny these agreements. Many point to the vast amount of rights lost by employees when they agree to such a procedure, e.g., trial by jury, discovery procedures, judicial review, etc. Sadly, a mere disparity in bargaining power does not constitute unconscionability in most cases.

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The first known case for using outside arbitrator was in 1871 in eastern Ohio. The Lincoln Mills Case is considered a landmark decision in arbitration. In this case Supreme Court ordered an employer to arbitrate grievances as provided for in a collective bargaining agreement that stated an employer’s agreement to arbitrate grievance disputes was a tradeoff for unions agreement

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If an employee is in violation of the signed agreement then the company can place the employee on disciplinary

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This may involve a grievance investigation meeting • grievance meeting – your employer will hold a grievance meeting at which you will be invited to state your case. You have the right to be accompanied to this meeting. Your employer will write to you to let you know the outcome of the grievance. • appealing – you have the right to appeal against the outcome of the grievance meeting if you don’t agree with it. In order to appeal you will need to write a letter to your employer stating that you do not agree with the decision and stating your reasons why.

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A dispute that might otherwise go to court becomes subject to binding arbitration only by the agreement of the parties. In this sense, arbitration is a creature of contract, and the terms of the parties’ particular arbitration agreement are generally controlling. Private arbitration is now governed by the Arbitration Act 1996. The Arbitration (International Commercial) Act 1998 introduced the UNCITRAL Model Law as the procedural framework for international arbitrations. Many commercial contracts include what is known as a Scott v Avery clause, whereby parties agree that in the event of a dispute arising between them, they will resort to arbitration to settle the dispute.

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The term labour relations, refers to the system in which employers, employees and their representatives (management) and, the government who all interact and work together directly and indirectly to set the ground rules for working relationships inside and organization. labour relations has its roots stemming from the industrial revolution, where we saw the emergence of trade unions to represent workers and their rights. A labour relations system reflects the interaction between the main actors in the organization namely the government, the employer, trade unions and employees. Well set out labour relations in an organization safeguards fair labour practices, as well as contributes to long term success within the organization. There are multiple advantages to the Labor Relations Act, all of these advantages are put into place in order to protect the well being of the employee as well as the employer both on a fair and equal basis.

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