What is an arbitration clause in an employment agreement?
An arbitration clause is a clause in an employment agreement, or often these days in an employee handbook that binds an employee to arbitrate their disputes, and prohibits them forever from filing a lawsuit in court. In some instances, the employee doesn’t have a choice. If it’s in the employee handbook, and you’re asked to countersign handbook, you have created a contractual relationship with the employer, and you’re bound by arbitration. If you’re negotiating your own contract, you can perhaps negotiate the arbitration clause out of the contract. It’s important because it limits your ability to go after your employer and you have to arbitrate your dispute, and you cannot file a lawsuit in court, and you cannot have a jury of your peers judge the facts of your case. You’re giving up that right. It’s a very important right in the United States. My name is Walker Harman. I’m the managing attorney of The Harman Firm. If you believe you’ve been the victim of illegal employment discriminat
