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Employment Contracts and Compensation Agreements


9. ARBITRATION.  Arbitration clauses are found in many types of contracts, including employment contracts.  In this provision, the parties agree at the onset of the relationship that, if they ever have a dispute about any aspect of the employment relationship, they will submit that dispute to arbitration rather than seek resolution by a court of law.  The "arbitration" clause may include details about the arbitration, such as whether the arbitration decision will be binding and how the parties will find an arbitrator when the time comes.

10. CHOICE OF LAW.  Employment laws vary from state to state.  Some states have laws that are generally viewed as more favorable or beneficial to employers than employees, or vice versa.  The "choice of law" provision in an employment contract is an agreement that, if the parties ever have a dispute that results in a lawsuit, the laws of a particular state will govern it, no matter where the lawsuit itself is filed.


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