Wage & Hour Arbitration Lawyers

Arbitration is a legal process of resolving disputes without engaging the court. During arbitration, both the party bringing the claim (known as the “claimant”) and the party against whom the claim is brought (known as the “respondent”) bring their sides of the case before a neutral arbitrator. The arbitrator, who is trained in this area, serves as a “judge,” in that they provide a decision to end the dispute. 

Although arbitration is, in many ways, similar to litigation, it is inherently different. The general ground rules of arbitration are often open to negotiation, allowing both parties a greater degree of flexibility and allowing for more legal interpretation. 

What Are the Benefits of Arbitration? 

Arbitration offers several benefits to both claimants and respondents, i.e., the worker and the employer in cases involving employment law. 

Some of the benefits of arbitration compared to litigation include that it is: 

• Faster and More Efficient: Arbitration tends to result in faster resolutions than litigation. This is due to a variety of factors, including that it is often easier to schedule an arbitration date (this can typically done within a few months vs. many months or even several years to obtain a court date). Arbitration also tends to be more efficient than litigation, with the overall process typically taking less time than a traditional trial.
• Relatively Inexpensive: Compared to litigation, arbitration is often—though not always—a much more cost-effective option. Because arbitrations are typically resolved faster than traditional trials, the cost of attorney fees and other related expenses tends to be less. Additionally, the costs of preparing for arbitration tend to be lower than those associated with litigation.
• Less Complicated: The rules and procedures involved in arbitration are generally simpler than those associated with traditional court proceedings, making the process altogether less complicated. It is often easier to admit evidence in arbitration, and discovery—the process of producing documents, conducting depositions, and disclosing evidence—is frequently reduced, saving both parties significant time.
• Private: Unlike court proceedings, which are almost always public, arbitration resolutions are private. This means that the outcome of arbitration is confidential, as is all evidence involved in the case, which can be a considerable benefit to both employers and employees in wage and hour arbitration matters.
• Impartial: In arbitration, both parties get to agree on a neutral, professional arbitrator. This means that you have some control over who will resolve your dispute. The arbitrator will usually be someone who has no stake in the case and will not favor either side, which can be an advantage for workers seeking dispute resolution against powerful companies or industries.
• Final: The decision provided by the arbitrator is often final, meaning a judge will likely not choose to overturn it. However, the court can enforce arbitration decisions and, in non-binding arbitration, it may choose to review decisions handed down in arbitration. This is relatively rare, though, and in most cases, the result of arbitration is that both parties can move effectively move forward following the conclusion of the case.

While arbitration does have its advantages, it also has disadvantages, as well. When arbitration is mandatory, such as in cases where an employee has signed an arbitration agreement with an employer, the claimant does not have the option to pursue a jury trial, even if this would be more advantageous. Additionally, arbitrators are human and can be biased in certain situations, and the flexibility of arbitration can result in arbitrators considering the “apparent fairness” of either party’s position, rather than strictly following the law. 

And, because binding arbitration does not allow for appeals, the arbitrator’s decision will likely be final. This means that, even if you are dissatisfied with the outcome, you cannot take further action.