The notice briefly describes the controversy. It specifies the kind of relief sought, including the amount of monetary damages requested. A response to the charges is then sent by the opposing party, usually within seven days. This may also assert a counterclaim for damages. Either party can add or change claims in writing until the arbitrator is appointed. Once this occurs, changes and additional claims can only be made with the arbitrator's consent.

After the AAA receives the Demand for Arbitration and reply, an AAA administrator usually supplies the parties with a list of potential arbitrators. The list contains the arbitrator's name, current occupation, place of employment and appropriate background information. The parties mutually agree to nominees from this list. Potential arbitrators are obligated to notify the AAA immediately of any facts likely to affect their impartiality (e.g., prior dealings with one of the litigants), and disqualify themselves where appropriate. (Note: If the parties do not agree beforehand to the number of arbitrators, the dispute is decided by one arbitrator, unless the AAA determines that three arbitrators is appropriate.)

Once the arbitrator is selected, the AAA administrator schedules a convenient hearing date and location. There is no direct communication between the parties and the arbitrator until the hearing date; all requests and inquiries are received by the administrator and relayed to the arbitrator. This avoids the appearance of impropriety. The parties are free to request a pre-hearing conference to exchange documents and resolve certain issues. Typically, however, the parties, administrators, lawyers, and arbitrator meet face-to-face for the first time at the actual hearing.

The complainant's case is presented first. Witnesses are called to give testimony (usually under oath). After witnesses finish speaking, they are usually cross-examined by the opposing party's lawyer. They may also be questioned by the arbitrator. The complainant introduces all its witnesses, documents, and affidavits until it has finished presenting its side of the case.

The opposing party then introduces its witnesses and documents to defend its case and/or prove damages. After the opposition has concluded its case, both sides are usually requested to make a brief summary of the facts (i.e., what they felt was proved at the hearing). Sometimes the arbitrator may request that legal briefs be submitted that summarize the respective position of the parties before rendering a final decision.

Arbitrators are generally required to render written decisions within 30 days unless the parties agree to some other time period. The arbitrator can make any award that is equitable. She can order the losing party to pay additional costs, including AAA filing fees and arbitrator fees. Legal fees may be awarded if the arbitration clause so provides. See page 279 for an example Award of Arbitrator.

Arbitrators volunteer their time for hearings lasting under two full days; they are paid a reasonable per diem rate (up to $750) for additional hearings. If the parties settle their dispute prior to a decision, they may request that the terms of the settlement be embodied in the consent award.

Arbitrators have no contact with the parties after the hearing is concluded. The parties are notified in writing by the AAA administrator and are sent a copy of the award. The decision in a typical employment case is brief - usually no formal reasons are given to explain why a particular award was rendered or the basis on which damages were calculated.