Arbitration policy/agreement

[MacGyver987]

While signing in to my employment website to view my pay info, I noticed that there was a new policy acknowledgement. From what I understood, if agreed upon, under almost any dispute between me and my employer would be resolved "only through binding arbitration". I don't have a ton of law experience or knowledge and know only some of the basics when it comes to advantages/disadvantages of using arbitration over the litigation process. At the end of the page, there was a section titled "Associate's Right To Opt Out", where one could send in writing to corporate that they did not agree to the arbitration agreement. Would it be to an employee's overall benefit to opt out? Wouldn't I be still able to use the arbitration process if I and company agreed upon it as well as have the option to use the court process?

An employee has 30 days to opt out upon receipt of the arbitration agreement. Any advice or input appreciated.What is the name of your state (only U.S. law)?

 

[sandyclaus]

While signing in to my employment website to view my pay info, I noticed that there was a new policy acknowledgement. From what I understood, if agreed upon, under almost any dispute between me and my employer would be resolved "only through binding arbitration". I don't have a ton of law experience or knowledge and know only some of the basics when it comes to advantages/disadvantages of using arbitration over the litigation process. At the end of the page, there was a section titled "Associate's Right To Opt Out", where one could send in writing to corporate that they did not agree to the arbitration agreement. Would it be to an employee's overall benefit to opt out? Wouldn't I be still able to use the arbitration process if I and company agreed upon it as well as have the option to use the court process?

An employee has 30 days to opt out upon receipt of the arbitration agreement. Any advice or input appreciated.What is the name of your state (only U.S. law)?

That's up to you.

Binding arbitration basically means that the company would rather have a private mediator arbitrate any contract disputes rather than going to court. Usually less expensive all around, especially when the company has the big bucks to hire their own legal team and you don't. However, binding arbitration is just as legally binding as going to court.

 

[MacGyver987]

Costs vs. benefits

Thanks for the reply. I guess my main concern is whether or not it would be worth it in the end. If I agree to the arbitration I can only use the arbitration process. If I opt out, I can also use other processes, including litigation. However, by opting out the company now has the right to use the court system against me rather than only being stuck with arbitration.

I don't see myself knowingly doing anything that would result in a company going after me, which is why I was leaning toward opting out so I would have more options if something did arise. Like you said, the company would have the resources to hire a legal team that I could not afford, but I just have that "what if" feeling that down the road it would have been beneficial to have had the option of litigation rather than ONLY having the arbitration process.

I really appreciate the input. Like I said before I don't have a whole lot of legal experience/knowledge. Maybe by hanging around here more often I can start building.

 

[davidmcbeth3]

You should not agree to binding arbitration; it is always a negative for the employee.