These agreements require employees to waive their right to sue their employers in court and instead resolve disputes through arbitration. Agreements to arbitrate are treated the same as other agreements.Arbitration is a commonly used form of alternative dispute resolution (ADR). ADR is a process for resolving disputes outside of the public court system. Arbitration is an effective, quick and inexpensive method of employment dispute resolution. Contact an employment lawyer in Los Angeles. Mandatory arbitration agreements in employment settings bring with them benefits and challenges. Arbitration is less formal than a trial and the rules are more relaxed. Arbitration can be binding or nonbinding. If the original contract included an arbitration clause, it means that both parties agreed not to pursue legal action in court against the other.