Archive for the ‘Arbitration Agreements’ Category

Over the years, most employees have always been excited about the prospects of starting a brand new job. That excitement I’m sure is even more magnified today where there are so few jobs to be had by those searching for them. In the flurry of excitement of starting a new job, the employee is usually given a very large pile of papers to sign and in most cases those papers are not explained to the employee so the employee signs them without question. It is this mystery pile of papers that usually contains the documents that come to haunt employees at later times. It is this pile of documents that typically contains the non-compete agreement. It is also this pile of documents that typically contains the dreaded arbitration agreement.

What is arbitration? For those who don’t know its a process where an employee agrees to allow a private person to decide your legal claims against your employer rather than a judge or jury. It is usually a more expedited process without the opportunity to conduct full discovery, as you would in court, and without the opportunity to have your case heard by a jury of your peers. In many cases, the filing fees are higher than to file a court case and in many cases the employee and employer are responsible to pay, on an hourly basis for the services of the arbitrator. These arbitrators can sometimes charge anywhere from $300 to $500 per hour. While in my experience it is a quicker way to resolve disputes, it is usually more favorable to the employer. Thus, the reason why so many employers try to get their employees to sign these agreements.
Read the rest of this entry »