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What is the purpose of an arbitration agreement?
Arbitration agreements are a way to limit litigation costs and keep disputes confidential. But signing an arbitration agreement also means giving up important rights. Before signing, it pays to read arbitration clauses and reject or renegotiate anything that you're uncomfortable with.
Is it OK to sign an arbitration agreement?
Answer: You don't have to sign the agreement, but the consequences of refusing to sign could be severe. Many employers ask new hires to sign an arbitration agreement: a contract in which the employee agrees to bring any legal disputes with the employer to arbitration, rather than to court.
Why is my employer asking me to sign an arbitration agreement?
Many employers ask employees to sign arbitration agreements, in which they give up their right to sue in court over job-related issues such as wrongful termination, breach of contract, and discrimination. But if your rights are later violated at work, that arbitration agreement might come back to haunt you.
How binding is an arbitration agreement?
Most arbitration rulings are binding, meaning once the arbitrator makes a decision, you can't appeal and ask for your case to be reheard, either by another arbitrator or by the courts.