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Should You Sign an Arbitration Agreement?

arbitration agreementWhen you’re starting a new job, there’s a lot of paperwork to sign. One of these documents is likely to be an arbitration agreement. But what is an arbitration agreement and should you sign it?

An arbitration agreement is a contract between an employee and their employer. In the agreement, both parties agree to settle any disputes through arbitration instead of going to court. In many instances, signing an arbitration agreement means you give up your right to file a lawsuit if your employer violates your rights.

Arbitration agreements are becoming increasingly common in the workplace. While these agreements can have some benefits for both employers and employees, they can also be abused. In some cases, employers may pressure employees into signing arbitration agreements as a condition of employment.

If you’re considering signing an arbitration agreement, it’s important to understand your rights and options. You should never feel pressured into signing something that you’re not comfortable with. If you have any questions or concerns, be sure to speak with an experienced employment law attorney before signing anything.

Also, keep in mind New York’s laws regarding arbitration agreements vary from other states. In some cases, employee arbitration agreements are prohibited under New York law. You can read more about the state’s arbitration restrictions here.

What is Arbitration?

Arbitration is a process where a neutral third party hears both sides of the argument and makes a decision. The arbitrator’s decision is typically binding on the parties involved. This means everyone must comply with the terms of the agreement.

Arbitration is generally less formal than litigation. The arbitrator typically has more flexibility in how they conduct the process. However, arbitration does not replace the need for a trial if the parties cannot agree.

So, should you sign an arbitration agreement? It depends. If you have any concerns about your rights as an employee, you should speak to an attorney before signing anything.

You Might Still Have a Claim

Even if you’ve signed an arbitration agreement, you shouldn’t assume any violation of your rights is a moot point. In some cases, you’ll still be able to take your employer to court.

For example, if you file a report with the Equal Employment Opportunity Commission (EEOC) and the EEOC determines your employer violated your rights, the EEOC can sue your employer on your behalf. Any arbitration agreement you signed does not apply to the EEOC or any other state or federal agency.

Have you been asked to sign an arbitration agreement? Do you feel you’ve been discriminated against or wrongfully terminated, and you aren’t sure what you can do because you agreed to arbitration?

We can help.

To learn more or to schedule a consultation to discuss your situation, contact Borrelli & Associates, P.L.L.C. to schedule a free consultation.


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