An employment arbitration agreement typically asks employees to agree that any disputes will be resolved through arbitration. It can be a standalone document, but it's most often part of a broader employment contract.
Generally there's no real benefit to the employee for binding arbitration. There's definitely disadvantages. Most tend to include, as yours apparently does, clauses forbidding bringing class actions against the employer.
There are some benefits to arbitration if something goes wrong for you alone because it can be easier and faster to navigate than going to court. That being said, if you would prefer to have access to class action lawsuits, then opting out might be the better option for you.
You have a difficult decision to make, although it may not matter whether you sign the “agreement” or not. If you continue to work after you are informed that a forced arbitration agreement governs your employment, you may be bound by it, even if you refuse to sign it.
There are some benefits to arbitration if something goes wrong for you alone because it can be easier and faster to navigate than going to court. That being said, if you would prefer to have access to class action lawsuits, then opting out might be the better option for you.
Arbitration agreements require that persons who signed them resolve any disputes by binding arbitration, rather than in court before a judge and/or jury. What is binding arbitration? Binding arbitration involves the submission of a dispute to a neutral party who hears the case and makes a decision.
However, the Texas Supreme Court has ruled that an employer can simply notify at-will employees of the details of an arbitration program it is adopting, and the employees can be bound to that arbitration program by continuing their employment, even if they never sign anything.
While it is true that arbitration is generally private because the public is excluded from the arbitration hearing, it does not follow that the arbitration proceedings remain confidential.
A claimant will typically start arbitration by sending a document known as a “request for arbitration” or a “notice to arbitrate” to its opponent.