A Different Look at Employment Arbitration Agreements

As the landscape for arbitration agreements in employment situations continues to change, one is left to wonder whether or not ADR can still be mandated in employer/employee disputes.  The short answer is “yes”, but it’s not necessarily an automatic thing anymore.

Take a look at how California has evolved in this arena.  It has developed a strong dislike for what it feels are unconscionable provisions in employment agreements, particularly those of the “take it or leave it” adhesion variety.  But California has not eliminated compulsory ADR, opting, instead, to try to level the playing field between employer and employee. 

The Health Care Compliance Association recently published an article that details many of the nuanced differences that California has put in place.  Given the changing landscape, including these provisions in your non-California agreements just might be the better part of prudence