For employers, arbitration is usually preferable, because it is less expensive than having the conflict go to court. Many employers include an arbitration clause in their Employment Agreements or as a separate Arbitration Agreement.
If applicable, employees should read and understand the outline of the mandatory arbitration agreement in their Employment Agreement. Note that the contract cannot prevent an employee from submitting claims to prosecutorial agencies, like the U.S. Equal Employment Opportunity Commission. However, it can restrict employees from submitting a claim to an administrative agency, such as the state’s Labor Commissioner.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.