COVID-19 Update : To protect your safety and the safety of our firm members, we are available to continue providing legal services via phone conferences and FaceTime. The COVID-19 pandemic is impacting employment in very significant ways. You have rights that are covered by laws already in existence and laws being passed by Congress and the Texas Legislature. Very soon, we will be posting a summary and FAQ on Corona Virus / COVID-19 that will provide guidance to those who have lost their jobs, remain employed or are searching for employment. Please check back to this site regularly for updates or call now to speak with an attorney about your rights.

COVID-19 Update : To protect your safety and the safety of our firm members, we are available to continue providing legal services via phone conferences and FaceTime. The COVID-19 pandemic is impacting employment in very significant ways. You have rights that are covered by laws already in existence and laws being passed by Congress and the Texas Legislature. Very soon, we will be posting a summary and FAQ on Corona Virus / COVID-19 that will provide guidance to those who have lost their jobs, remain employed or are searching for employment. Please check back to this site regularly for updates or call now to speak with an attorney about your rights.

Looking Out For Your Career

Should you sign a contract with an arbitration agreement?

| Feb 8, 2021 | Firm News

Arbitration agreements are common in employment contracts. You may wonder if it is in your best interests to sign a contract that includes one.

It can help to understand what they are and what they mean to you before you sign. According to Mighty Recruiter, an arbitration agreement is where you commit to mediation over any disputes about the contract rather than having the right to take your employer to court.

The issue

The biggest issue with arbitration agreements is that they usually favor employers. You are more likely to get bigger settlements and better wins through a lawsuit than mediation. This makes it essential that you understand the agreement before you sign your contract because you want it to be as fair as possible.

The details

Not every arbitration agreement is the same. Some will restrict your right to sue in all situations while others may only require arbitration for specific reasons.

There may also be differences in the results of mediation. Most of the time, the ruling in mediation is binding, but there may be some agreements that do not make the ruling in mediation binding or at least give you the option for appeals.

The benefits

Employers have many reasons why they want arbitration agreements. The most common is that mediation is cheaper and faster than litigation. Employers also like these agreements because they increase confidentiality and are informal in nature.

Employees may find them beneficial in situations where they do not have the strongest case since a mediation typically results in some type of settlement. It may be easier to have a win in medication than in a courtroom.