Should my daughter sign a binding arbitration agreement with her new employer?

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Should my daughter sign a binding arbitration agreement with her new employer?

The small retail company she works for was bought recently by a larger

corporation and they are offering voluntary binding arbitration agreements for

employees’ signature. If they choose not to sign, they can opt out. She asked me for advice and I am not sure in what circumstances it would be a good idea to not sign that agreement? Should she opt out?

Asked on February 20, 2018 under Employment Labor Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Arbitration is almost always a bad idea for employees--that's why employers like it:
1) Arbitrators are often drawn from the ranks of corporate attorneys, in-house counsel, and other industry professionals who favor the business side.
2) Arbitration, unlike court cases, is generally not appealable: even if the arbitrator rendered a bad decision, it is typically final.
3) While in theory, arbitration should be less expensive than ligitation (going to court), in my experience, it generally costs about as much, so there is no cost savings to it.


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