Imposing a high cost on an employee who wishes to enforce his or her rights under the law may render an arbitration agreement unenforceable depending on the circumstances. It is important for an employee to realize that these costs are sometimes not obvious. Arbitrators can claim very high fees, even if they interfere in the case – sometimes thousands of dollars – in addition to an hourly rate for their services. Proof of the cost of an arbitration procedure is sometimes difficult to provide and is sometimes required by the courts to use this ground as the basis for the haircut of an agreement. No fixed dollar amount is set by law to be too high to compel an employee to pay. 8. What are the legal limits of forced regulation? The Economic Policy Institute has estimated that by 2024, about 80 percent of U.S. workers will be required to sign a condition of employment. Arbitration agreements often eliminate your jury rights for all sorts of work-related claims, including violations of Title VII of the Civil Rights Act, the Freedom of Medical Property Act, and the Fair Labor Standards Act.
This also applies to the situation of organised jobs in which workers are represented by trade unions. Union/management arbitration proceedings are often the end of the redress procedure for workers covered by a collective agreement. Arbitration is a frequently used form of alternative dispute resolution (ADR). While voluntary arbitration agreements have been used for many years in commercial disputes, current employers use another form of arbitration, known as forced arbitration. Forced arbitration occurs when an employer has tied the first employment, continued employment or significant employment benefits to the worker`s agreement in order to settle future claims against the employer. While you should speak to a lawyer for any questions relating to certain provisions of the arbitral tribunal, below you will find some frequently asked questions about the arbitration procedure. You may well decide to withdraw a job offer if the employee does not agree to arbitration. However, if you hire an employee with an employment contract and not as a collaborator “at your convenience”, you should check that the requirement does not exceed your contractual rights. You may wish to include in the employment contract the need for an arbitration agreement for a service contract. One area of the faculty of scruples, for which the courts are generally very sensitive, is any biased method of selecting the arbitrator. For example, if the employer retains full control over the selection of the arbitrator, most courts have found the agreement unenforceable. Unfortunately, this is still a somewhat difficult situation to discover, as employers often use seemingly neutral or independent agencies to provide arbitrators.
However, in many situations, these agencies only promote their services to employers and point out that they are a way to control the cost of workers` rights. . . .