Requiring employees to agree to resolve disputes through private arbitration rather than court proceedings is a common practice. Typically, this agreement is formalized through a signed document as a condition of employment or continued employment. For example, a new hire might be presented with an arbitration agreement along with other onboarding paperwork, or existing employees might be asked to sign a new agreement as a policy update.
This approach offers several potential advantages for employers, including potentially faster and less expensive dispute resolution compared to traditional litigation. It can also offer a degree of privacy, keeping internal disputes out of the public eye. Historically, arbitration clauses have been increasingly utilized to manage workplace conflict. The legal landscape surrounding these clauses is constantly evolving, with court decisions shaping their enforceability and scope.
