Whatever you think about mandatory arbitration clauses, they require consent. The First Amendment implies that people generally have the right to “petition the Government for a redress of grievances.” In other words, in the U.S. it’s fundamental that participants in mandatory arbitration have legally waived their right to bring the case to court.
When it comes to resolving employment-related disputes, many companies have determined that a resolution in arbitration is desirable. Ideally, arbitration is less expensive and more final. It gives the employee an opportunity to have grievances heard by someone other than management, and it gives the company a more private resolution without the risk of negative publicity.
Though both can be a good way to resolve disputes of all types, it is likely that many individuals do not know what mediation or arbitration are. Though they are both methods of alternative dispute resolution, they are not the same thing. Whether one of the processes might be used to resolve an issue you have depends on your situation.
Both state and federal court systems here in Pennsylvania and across the nation have been hit hard by budget limitations caused by the poor economy. That doesn’t mean, unfortunately, that there are fewer disputes to be resolved -- only that the courts are jam-packed with cases. If there were no option but trial in those cases, the delays would be so long that there would essentially be no access to the courts, or justice.
According to a federal appellate court, the adequacy of the Equal Employment Opportunity Commission’s pre-trial settlement process is not something employers can challenge in court. Attempting this process, which the EEOC calls “conciliation,” is required by law before the agency can file a lawsuit.