Consider Arbitration Before You Head To Court

Whether you have one employee or fifty, the day may come when you and one of your workers have a major disagreement. You can take steps now to help prevent a potential lawsuit. A recent U.S. Supreme Court ruling gives businesses the green light for requiring employees to go through arbitration to settle workplace disputes rather than going to court. 

With arbitration, you and your employee both present your case to a neutral third party who then decides the outcome of your dispute. The benefits of arbitration compared to the formal legal process include its low cost, its speed, and the ability to keep your dispute relatively private. 

If you decide to use an arbitration agreement, you should work with your attorney to draw up one that will stand up in court. Your employees will need to read, understand, and sign the agreement.

While you are thinking about this issue, consider adding arbitration clauses to your standard customer and vendor contracts. Your attorney can advise you as to what may work best in your type of business.

© Copyright 2001 Raymond S. Kulzick. All rights reserved. 010501.