Publications
The Arbitration Alternative
Is there a way around all of this?
Some employers have tried signing up their employees to employment agreements that include a provision that requires all employment-related disputes to be privately arbitrated instead of litigated in court, before a jury. Arbitration costs a lot less - the right to take depositions is limited, and there are no appeals, which can save tens of thousands of dollars - and if the arbitration provision is properly drafted, the case will end up before an objective, neutral professional, which minimizes the risk of a verdict based on emotion and bias.
Employees have, understandably, fought these arbitration provisions. Their argument goes something like this. "I signed the agreement," they admit, "but as a matter of public policy the court should let me off the hook. The employer made me sign it. I didn't do it voluntarily. More important, the federal government guaranties me certain rights, like the right to be free from ADA and FMLA violations. If you violate my rights, the government says I can sue you in a federal court. You can't take away my basic rights by some mumbo-jumbo in an agreement I was forced to sign." Some judges have bought that argument, and some have not. More significantly, some state legislatures have bought the argument, and those states have passed statutes making these kinds of arbitration provisions illegal and unenforceable even if the employee knowingly and willingly agreed.
The upshot of this confusion has been this: when employers asked their lawyers if they could force employment-related disputes into arbitration, their lawyers could not give them a clear answer. But that all changed a couple of weeks ago.
Counsel Consulting Group LLC helps companies throughout the United States avoid employment and HR-related claims and liabilities. CCG assesses existing policies, procedures and problem areas; it provides customized liability-avoidance training to managers and executives; and it designs and implements business techniques that reduce employment liability risks on a long term basis. CCG also offers specialized workshops for managers and HR executives, customized consulting in focused employment-related areas, and CD-ROM and web-based training alternatives. For more information, contact us at info@powelltrachtman.com and visit our website at www.counselconsulting.com.
Powell, Trachtman, Logan, Carrle & Lombardo, P.C. is a full service law firm with offices in suburban Philadelphia, PA, Harrisburg, PA and Cherry Hill, NJ. Powell Trachtman represents a variety of commercial enterprises, entrepreneurs and business executives in respect to their litigation, litigation avoidance planning, business formation, business transactions, estate and tax planning, and other needs. We are also approved defense counsel for numerous insurance carriers in matters pertaining to professional malpractice, products liability, employment practices, directors and officers liability, and many other fields. For more information, contact us at info@powelltrachtman.com and visit our website at www.powelltrachtman.com.
