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[AL] What rights am I giving up by signing my employer’s arbitration agreement?

Can you review an employment arbitration agreement and tell me what it means? I’m located in Alabama.

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Dan
Dan

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Thanks for sharing all of that. I’ve gone through everything carefully. This language is standard. They want disputes to go to arbitration, not court. Their lawyers are trying to avoid public cases and class actions this way. Practically, there’s not much choice, as declining it can lead to termination. 

Here is a breakdown of what it entails:

  • Binding Arbitration Requirement (FAA §§ 2–4, 10–11): Any legal disputes that could be brought in court must be resolved through binding arbitration (wrongful discharge, discrimination, harassment, wage-hour, etc.).
  • Federal Arbitration Act: Proceedings are governed by the FAA (9 U.S.C. §§ 1–16).
  • Selection of Arbitrator: You may help select a qualified arbitrator.
  • Authority of the Arbitrator: The arbitrator can award the same remedies a judge or jury could; decisions are binding and enforceable.
  • Exceptions: TRO/preliminary injunctions; unemployment or workers’ comp; NLRA claims to the NLRB; certain insured benefit-plan claims; any claims not arbitrable under law.

Considerations: Arbitration may be faster/cheaper but limits appeals. Review fairness, arbitrator selection, and consider speaking with an Alabama employment attorney.

Does that make sense?

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Can you review an employment arbitration agreement and tell me what it means? I’m located in Alabama.

Lexi

Lexi, Chatbot

I understand you're looking for help with an employment arbitration agreement in Alabama. Do you have any specific concerns or questions about the agreement?

This is what it says.

“We believe that resolving employment disputes through the court system can take years and drains employees both emotionally and financially. As a condition of employment with the Company, we have therefore adopted a formal dispute resolution procedure which requires that all employees use binding arbitration to resolve any legal dispute between the employee and the Company which could be brought in court, including claims regarding wrongful discharge, employment discrimination, harassment, wage-hour or any other dispute relating to employment or arising under any labor, employment, or civil rights law.

Arbitrations are conducted in accordance with the Federal Arbitration Act. You may help to select the arbitrator who will hear your case from a list of qualified arbitrators. The arbitration proceedings are similar to court proceedings, with the arbitrator acting as the judge. If the arbitrator finds that your claim is valid, the arbitrator has the authority to award you everything a judge or a jury might award you. The arbitrator also has the authority to require the parties to comply with the award. An award by an arbitrator is usually issued within months, where a court decision often takes years.
The only exceptions to the requirement of binding arbitration are: (a) actions by either party for a temporary restraining order or other preliminary injunctive relief, which may be pursued in a court of competent jurisdiction pending resolution of the underlying dispute in arbitration; (b) any claims for unemployment or workers' compensation benefits which are subject to the exclusive jurisdiction of a state agency; (c) any claims arising under the National Labor Relations Act which are brought before the National Labor Relations Board; (d) any claims which are based upon an employee benefits plan that is underwritten by a commercial insurer which decides payment of claims and does not agree to arbitrate under this Agreement; and (e) any other claims not subject to binding arbitration pursuant to state or federal law.”

I have not signed it yet. I’m considering it.

Lexi

Lexi, Chatbot

Is there anything else the employment lawyer should know before I connect you?

No.

Dan

Dan

Hello and welcome. My name is Daniel, and I’ve been a licensed lawyer for over 21 years. I’m truly sorry you’re going through this, and I’m here to help. What would you say is your main concern right now?

My new employer is making me sign an arbitration agreement as a condition of employment. What does this mean and what exactly am I giving up under this agreement?

Dan

Dan

Thanks for sharing all of that. I’ve gone through everything carefully. This language is standard. They want disputes to go to arbitration, not court. Their lawyers are trying to avoid public cases and class actions this way. Practically, there’s not much choice, as declining it can lead to termination. 

Here is a breakdown of what it entails:

  • Binding Arbitration Requirement (FAA §§ 2–4, 10–11): Any legal disputes that could be brought in court must be resolved through binding arbitration (wrongful discharge, discrimination, harassment, wage-hour, etc.).
  • Federal Arbitration Act: Proceedings are governed by the FAA (9 U.S.C. §§ 1–16).
  • Selection of Arbitrator: You may help select a qualified arbitrator.
  • Authority of the Arbitrator: The arbitrator can award the same remedies a judge or jury could; decisions are binding and enforceable.
  • Exceptions: TRO/preliminary injunctions; unemployment or workers’ comp; NLRA claims to the NLRB; certain insured benefit-plan claims; any claims not arbitrable under law.

Considerations: Arbitration may be faster/cheaper but limits appeals. Review fairness, arbitrator selection, and consider speaking with an Alabama employment attorney.

Does that make sense?

Yes. Since it states that it’s a condition of employment, does that mean it’s void if I’m no longer employed with them?

Dan

Dan

They are requiring it if you are to work, so you can refuse and not work there. They go together. I want to make sure everything is clear—if you have follow-ups, let me know. All the best.

Dan

Dan

29,578 satisfied customers

Dan
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