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Signing an Arbitration Agreement With Your Employer


  • Disclosure of information. Any potential arbitrator should have to disclose any information regarding business and personal interests to ensure she is not biased in favor of the employer. For example, the arbitrator should not be someone who is a stockholder in the company. You and the employer should have the right to reject any arbitrator who has a conflict of interest.
  • Costs of arbitration. Because the employer is the one who wants to use arbitration -- something that must be paid for -- the employer should have to pay for the costs of the arbitration.
  • Remedies available. Make sure that you can receive through arbitration all of the remedies that you would have gotten if you had filed your claim in a court of law. For example, the agreement should not prohibit you from seeking punitive damages or damages for emotional distress.
  • Attorney representation. You should have the right to be represented by an attorney throughout the arbitration process.

You Can Still Use Government Agencies to Fight Discrimination

If you sign an arbitration agreement and your employer discriminates against you, you can still complain to a government agency, such as the federal Equal Employment Opportunity Commission (EEOC) -- and the agency can decide to sue the employer in court on your behalf. This is because the arbitration agreement you signed applies only to you; it doesn't apply to an agency that helps you.

Copyright 2008 Nolo


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