What is a

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What is a

I am filling out a job application online with no prior work experience and don’t

exactly understand what a Mutual Arbitration Agreement is.

Asked on November 24, 2018 under Employment Labor Law, West Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

A mutual arbitration agreement is an agreement that in the event a legal dispute or claim between you and your employer--such as for wrongful termination, for example--it cannot be taken to court; instead it has to go binding arbitration. So it is giving up the right to sue, and agreeing in advance that an arbitrator, not a judge or jury, decides. Arbitration is generally good for businesses, bad for employees (or consumers): arbitration is essentially as expensive as litigation, or nearly so, so you don't really save money, but arbitrators tend to be corporate/business attorneys or members of the industry, so they tend to be business friendy, and there is usually  no right to appeal a decision with which you disagree.


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