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You cannot sue or be sued after you sign an arbitration agreement. If the original contract included an arbitration clause, it means that both parties agreed not to pursue legal action in court against the other. Any disputes that arise will have to be settled through arbitration.
U.S. Supreme Court Holds That Most Employment Agreements Requiring Arbitration of Claims are Covered Under the Federal Arbitration Act. In recent years employers have recognized the benefits of arbitration of employment disputes over costly and time consuming civil litigation to say nothing of the vagaries of juries.
"Arbitration agreement" is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
Bad. This question is often debated among attorneys, judges and arbitrators. Judges like arbitration because they're chronically overworked.
In such cases, arbitration will almost always favor the defendant employer. Nearly every attorney who represents working people in employment cases will agree that arbitration agreements are not the best choice for employee plaintiffs.
Under the Federal Arbitration Act, arbitration agreements involving foreign commerce or interstate commerce are considered valid, irrevocable, and enforceable, except when there are legal or equitable grounds to revoke the contract.
Mandatory arbitration is a contractual provision found in many employment contracts. It allows employees and employers to resolve disputes swiftly and cost-effectively. However, mandatory arbitration also contractually prevents workers from pursuing resolutions through the courts.
Arbitration is considered more efficient, cheaper, and faster by employers, but often employee rights are left behind. Arbitrators often side with employees, and may not take your rights as seriously as would a California court.
Many experts have concluded that employees who arbitrate their claims obtain results that, on average, are as good or better than the results obtained by employees who litigate.
Employers can cite several factors suggesting that arbitration is a fair way to resolve employment disputes: Arbitration has been widely used to resolve disputes in unionized workforces for more than 70 years. Arbitration is often faster than litigation. Employees may not realize that litigation often takes years.