Recruiters are constantly pushing employees to sign arbitration agreements, giving up their rights, so be mindful of what you sign. Many companies and employers require workers to sign arbitration agreements, waiving their ability to prosecute in court over matters like wrongful termination, breach of contract, and discrimination.
When an employee signs an arbitration agreement, he or she agrees to prosecute any legal claims against the company through arbitration rather than a lawsuit. When you’re just going back to work and don’t anticipate any legal issues, it may not seem like a huge deal. However, if your rights are abused at work, that arbitration agreement could come back to bite you. It could potentially determine whether you win or lose your lawsuit.
Arbitration’s Drawbacks
You might be wondering why it matters when your claims are usually being addressed somehow whether in arbitration or in a court of law. In various respects, arbitration varies from a court case, and many of these factors work against workers.
Primarily, arbitration is considered and resolved by an “arbitrator,” a private citizen (typically a retired judge) who is hired by one or both parties to listen to evidence and witnesses and make a decision. This means you won’t have your story heard by a jury, which is generally sympathetic to workers.
Furthermore, the volume of information each side can obtain from the other is limited by the arbitration process. In most employment matters, this is to the employee’s disadvantage because the employer normally has access to the majority of the records and information pertaining to the employee’s case.
Moreover, arbitration awards are usually not appealable, making them more definitive than court judgments. If you believe the arbitrator’s ruling is unfair or incorrect, you will not be given a second chance to plead your case before a higher court, as you would if you had gone to a court trial.
Why Arbitration is Beneficial?
There are several advantages to arbitration versus a court trial. Arbitrations are less formalized than court proceedings, and this casualness can make the process easier for everyone involved, particularly employees who aren’t used to dealing with the legal system. In addition, arbitration disputes are heard and decided far faster than court cases, which might take years to complete.
Ensure You Read Each Document Carefully
Arbitration agreements are frequently signed unwittingly by employees. What is causing this? On their first day, some businesses send new employees lots of paperwork to fill out, and some workers sign contracts without reading them.
While many firms are upfront and disclose the arbitration agreement to employees in a different contract, others bury arbitration provisions in other papers like an employment contract, a hiring letter, or an employee handbook.
You accept all of the contractual obligation, letter, handbook acknowledgment form, or any other documentation from your company when you sign it, even if you haven’t read it. This is especially problematic with handbooks, which can be rather lengthy.
To avoid inadvertently relinquishing your rights, don’t sign any paper admitting that you’ve read something unless you’ve thoroughly read it and comprehended it. Also, do not sign any form stating that you agree to the terms unless you have read them completely and agree to them.
The Consequences of Not Signing
You have the right to decline to sign an arbitration agreement but doing so may jeopardize your career. If a new employee refuses to allow the arbitration agreement, the company can usually revoke the job offer. And an at-will employee who refuses to sign one can be fired. As a result, refusing to sign the contract could put your career in jeopardy.
Nevertheless, some companies will discuss this topic, particularly if they are more interested in you than in arbitration. If you are a highly sought-after candidate or a valuable employee, your business may allow you to refuse to sign rather than terminate your employment.
Fairness in the Agreement
If your boss won’t let you refuse to sign outright, you may be able to negotiate specific provisions of the contract to make it more favorable to you. Even if your boss does not agree with your wishes, you are unlikely to be fired for asking. It’s no different than negotiating your salary or benefits when it comes to your arbitration agreement. The employer is bargaining in its own best interests, just as you are.
You may need to hire an attorney to help you reach the most equitable agreement possible. Some measures that can help produce a more balanced arbitration procedure are listed below:
- Arbitrator’s Selection:
Given the arbitrator’s jurisdiction and the fact that you are unlikely to be able to challenge the arbitrator’s decision, you will wish to have equal rights in selecting the arbitrator as your employer. You and your employer should be able to reject at least one arbitrator without having to justify your decision.
- Information to be disclosed:
To ensure that the arbitrator is not prejudiced in favor of the employers, a potential arbitrator should be required to reveal information about his or her business and personal interests. An arbitrator who is a shareholder in the corporation, for example, should not be appointed. Any arbitrator who has a potential conflict of interest should be rejected by you and your employer.
- Arbitration Expenses
Arbitration is a costly process, so the employer should be the one to pay for it since the employer is the one who wants to use it.
- Accessible Remedies
If you had filed your claim in a court of law, ensure you could receive the same remedies through arbitration. If you want to seek punitive damages or emotional distress damages, then this agreement should not hinder your request.
- Representation by a Qualified Attorney
As long as the arbitration process continues, you should have the right to be represented by an attorney.
If you accept an arbitration agreement and your employer wants to discriminate against you, you can still file a complaint with a government agency, such as the federal Equal Employment Opportunity Commission (EEOC), and the EEOC may decide to file a lawsuit on your behalf.
Your arbitration agreement only applies to you; it does not cover an agency looking to enforce the law.
Siman Law Firm in Los Angeles can assist you in this regard.