On your first day of work, you signed a W-4 form, I-9 form, received a handbook, and signed some other documents. Did you sign an agreement to arbitrate workplace disputes? If so, what does that mean? 

Arbitration is a legal process of resolving employment disputes outside of the traditional court system. The Federal Arbitration Act (“FAA”) was enacted in 1925. In arbitration, the employee waives a right to a jury, and the case is decided by the appointment of an independent third-party arbitrator, usually chosen by the parties. The arbitrator acts in the place of a judge and makes binding decisions about evidence and the ultimate outcome of the case.   Arbitration awards are often confidential. 

Arbitration can be faster and less formal. It is typically governed by a set of rules agreed upon by the arbitral forum – American Arbitration Association, or JAMS, for instance. The decision made by the arbitrator is final and binding, subject to very narrow grounds for appeal. 

Arbitration has had a significant impact on employment disputes in recent years. Many employers now require employees to sign arbitration agreements as a condition of employment. This means that you will not be hired unless you sign the arbitration agreement. Aside from the process being confidential, employees waive rights to a jury and t to pursue a class action lawsuit by agreeing to arbitrate.     

Courts view arbitration favorably, perhaps because the arbitration process reduces the number of court cases. Employment Attorney Raymond Nardo routinely handles arbitrations on behalf of employees.