Enter Into A Mutual Agreement To Arbitrate Claims As A Condition Of Employment

Imposing a high cost on an employee who wishes to enforce his or her rights under the law may render an arbitration agreement unenforceable depending on the circumstances. It is important for an employee to realize that these costs are sometimes not obvious. Arbitrators can claim very high fees, even if they interfere in the case – sometimes thousands of dollars – in addition to an hourly rate for their services. Proof of the cost of an arbitration procedure is sometimes difficult to provide and is sometimes required by the courts to use this ground as the basis for the haircut of an agreement. No fixed dollar amount is set by law to be too high to compel an employee to pay. Legal restrictions on forced arbitration are still ongoing and depend on the national judicial system and the territory of the country where the agreement is being tested. Some courts have adopted the practice of forced regulation, while others are skeptical about adopting such agreements against reluctant employees. Signing an arbitration agreement has advantages and disadvantages. Among the advantages, Kamran Shahabi is the managing partner of Valiant Law.

He represents clients in complex labour, insurance, general liability and business disputes. The views expressed in this article are exclusively those of Kamran Shahabi. Sometimes the arbitration agreement consists of only a few sentences. An arbitration agreement may also include additional terms, for example. B an overview of the issues that are the subject of the arbitration or the manner in which the arbitration is conducted. The main exception to this provision is that the arbitration agreement is not applicable if it is contrary to general contract law – which applies to all contracts under the law of the State governing the agreement. The #MeToo movement has destroyed, in some states, the ability of companies to enforce confidentiality agreements by victims of sexual harassment. And the Kentucky Supreme Court in October virtually banned all binding arbitration contracts before employment.