Arbitration Clauses in Employment Contracts


Arbitration clauses are provisions that are included in many employment contracts, and they require employees to resolve any disputes with their employers through private arbitration rather than through the court system. While these clauses can be controversial, they are becoming increasingly commonplace.

Proponents of arbitration clauses argue that they provide a faster and more cost-effective way of resolving disputes. They also argue that arbitration is less adversarial than traditional litigation, and it can help to preserve working relationships between employers and employees.

However, critics of arbitration clauses point out that they can limit employees’ access to justice. Arbitration can be less transparent than traditional litigation, and employees may not have access to the same legal remedies that they would in a court of law. Some critics also argue that arbitration does not provide adequate protections against systemic discrimination and harassment.

Despite these criticisms, arbitration clauses remain widely used in employment contracts. If you are an employee who is negotiating an employment contract, it is important to understand the implications of any arbitration clause that is included in your agreement.

One key consideration is whether the arbitration clause is mandatory or optional. A mandatory arbitration clause requires you to submit any disputes to arbitration, while an optional clause gives you the choice of going to court or using arbitration. If you are concerned about limiting your access to justice, you may want to negotiate for an optional arbitration clause that allows you to choose the most appropriate forum for your dispute.

Another consideration is the scope of the arbitration clause. Some clauses only apply to specific types of disputes, while others are broader in scope. You will want to carefully review the language of the clause to make sure that it is not overly broad and does not unfairly limit your legal rights.

If you are considering signing an employment contract that includes an arbitration clause, it is important to consult with an experienced employment lawyer to make sure that your legal rights are protected. Your lawyer can help you negotiate for favorable contract terms and advise you on the best course of action if a dispute arises.

In conclusion, arbitration clauses are becoming increasingly common in employment contracts. While there are benefits to using arbitration to resolve disputes, it is important to carefully review any arbitration clause to make sure that it is fair and does not limit your legal rights. With the help of an experienced employment lawyer, you can negotiate for a contract that protects your legal interests and ensures that you are not unfairly limited in your ability to seek justice.