Settling Disputes » Employment Arbitration
Many employment cases are resolved through a process called arbitration instead of through the court system, which is a process known as litigation. Arbitration is essentially a private court system in which an arbitrator acts as the judge. The arbitration is usually administered by either the American Arbitration Association or a Hawaii company that specializes in resolving legal disputes, Dispute Resolution and Prevention, Inc.
There are two different types of employment arbitrations - union arbitrations done pursuant to the provisions of a collective bargaining agreement, and private arbitrations done pursuant to an arbitration agreement between the employer and employee. Our firm does represent employees in private arbitrations, however we do not represent unions in union arbitrations. If you are in a union and have a grievance, that should be handled through your union. Usually a private attorney has no role in a matter handled pursuant to a collective bargaining agreement.
Often non-union employers require their employees to enter into an arbitration agreement so that employment disputes are arbitrated, not filed in court. The U.S. Supreme Court has ruled that such agreements are binding and enforceable.
Arbitration is similar to litigation in that both sides present the facts to a neutral fact finder. In the courtroom the litigation process tends to take longer, but the employee has some procedural safeguards that the arbitration process does not permit.
Arbitration is decided by a hearing at which both parties have the right to be present and present any witness or documentary evidence they would like to be considered by the arbitrator. Formal evidentiary rules do not apply. At the conclusion of the arbitration hearing, the arbitrator takes the matter under consideration and often allows for post-hearing briefing from both sides. Usually within 30 days prior to the end of the hearing, once briefs are submitted, the arbitrator issues an "award", which is a final, binding decision setting forth who won and who lost, and how much money if any is owed. The arbitrator's award resolves all of the issues between the employer and employee.
Arbitration awards, if not paid promptly, can be turned into "judgments" which is a process that is done in court. Most of the time arbitration awards are upheld by the courts, although in a small percentage of cases the awards are "vacated" (set aside) by the courts. There are limited rights of appeal in arbitration.
The decision as to whether to arbitrate or litigate a claim is a complex one. Whether or not a pre-dispute arbitration agreement between an employee and an employer is binding, and the extent to which all or a portion of that agreement may be set aside, presents complex legal problems. If you do have an arbitration agreement with your employer and have a serious problem with your employer (or former employer), make sure that you notify your attorney promptly by you of the existence of the arbitration agreement.
Our firm has obtained several large arbitration awards. If you are involved in a non-union arbitration with your current or past employer, we may be able to assist you too. Contact Us Today →