When you sign an employment or consumer agreement, your contract may include an arbitration clause. After your contract becomes effective, this clause binds you to settle disputes through Arbitration. Suppose you find yourself in a situation where Arbitration is your only option. In that case, it is crucial to understand this process and secure the legal representation you need.
What is Arbitration?
Arbitration is a form of alternative dispute resolution (ADR) to settle civil disputes before a trial litigation proceeding. Parties often invoke Arbitration to minimize the time, money, and effort associated with trial litigation.
An arbitrator, a neutral third party with experience in conflict resolution, decides disputes in Arbitration. Arbitrators are usually experts in the subject area they preside over and are qualified to issue awards for damages. The award recommended by the Arbitrator may be binding or non-binding, depending on the agreement between the parties.
Like a trial proceeding, an Arbitration can involve subpoenas for witnesses, depositions, and discovery. The presiding organization determines the rules and procedures associated with an Arbitration. Organizations that regularly conduct arbitrations include the American Arbitration Association (AAA) and JAMS Mediation, Arbitration, and ADR Services.
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Minnesota Laws Governing Arbitration
Employment in Minnesota is at-will; an employer can terminate your employment for any reason that is not illegal or based on discrimination. Because of this, refusing to sign an employment agreement with an arbitration clause can jeopardize your job.
In employment cases, Arbitration can occur through discrimination claims, wrongful termination, hostile work environment, and wage and hours claims. Visit the Minnesota Department of Labor and Industry website for more information here.
What does the Arbitration Clause in your contract mean, and what makes it valid?
By signing an agreement with an arbitration clause, you consent to invoke Arbitration as your primary method for civil dispute resolution. The validity of this clause depends on satisfying the basic rules of a legally binding contract. A contract requires agreement and an exchange of value between parties. Suppose you have been coerced or forced into signing an agreement with an arbitration clause. In that case, this violates the elements of a legally binding contract. Similarly, an arbitration clause may not be enforceable in an employment case where the exchange between payment and performance is unsatisfactory.
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How Madia Law can Assist
We understand the importance of protecting your rights and resolving your employment concerns fairly. In an employment case, you still have many rights if you are bound to Arbitration. This clause in your contract does not prevent you from filing a charge of discrimination with the MDHR or the EEOC. Here are a few ways we can assist:
- File a Charge of Discrimination
- Challenge an Arbitration requirement
- Represent you in Arbitration
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