Arbitration and the Workplace

Take a look at most work contracts these days, and you will see an Arbitration Clause. But do you know what it means? Arbitration means that any dispute between the company and the employee will be handled with the use of an Arbitrator, outside of the courts. In most instances the arbitrator’s decision is binding, but that isn’t always the case. This is why it is very important to understand arbitration before you sign that employment contract.

You have to be prepared in the event that if something happens at work, your options on how to handle it are limited…and you might not win. This also covers a variety of issues; everything from payroll disputes to being fired or let go and everything in between.


Additionally, arbitration clauses can be found in contracts that you sign with companies that you do business with, whether from an employee standpoint or as a private citizen. Take for instance having to sign a contract with the best hybrid event platform for an upcoming company event. If you are unhappy with the results provided by that platform you might have a leg to stand on in court UNLESS you signed an arbitration agreement with their company. In that case, you are bound to settle the dispute with a third-party arbitrator, and the results might not be what you expect.

Another example of workplace arbitration might be if you are hired by a company that makes various products, and the aspect of YOUR job is to create the HVAC pressure switch. Your job entails creating 50 each week, but you are failing to do so, and the company fires you. Normally, you might have the chance to see your employer in court for false firing. However, if you signed the Arbitration Clause during the hiring process, you are now bound to it.

For these reasons and many more, it is important to keep in a contact with a good attorney. One that can help you understand the limitations of the arbitration clause. Goulart Workplace Lawyers are exactly those types of lawyers. They can help you to understand exactly what you are signing, and be there for you if you ever need to attend arbitration over a dispute with your employer.

The best thing that you can do before signing ANY contract is to thoroughly read the arbitration clause, know where you stand before signing, and if need be, have an attorney go over it with you. Jumping into situations without knowing how you might be limited, is why so many people are left in the dark…don’t be one of those people!

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