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Why Employers Should Enforce Arbitration Agreements

1204 Words5 Pages

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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