The Mutual Arbitration Agreement Employment is commonly implemented at the start of employment relationships in the United States to establish a clear framework for dispute resolution. This document has become increasingly important as organizations seek to manage litigation costs and expedite dispute resolution processes. It details the types of claims subject to arbitration, procedures for selecting arbitrators, cost allocation, and compliance with federal and state laws. The agreement must be carefully drafted to ensure enforceability under the Federal Arbitration Act while maintaining fairness and protecting both parties' rights to seek meaningful relief.
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1. Parties: Identifies the employer and employee entering into the agreement
2. Background: Context of employment relationship and purpose of arbitration agreement
3. Definitions: Key terms used throughout the agreement including 'Arbitration', 'Claims', 'Disputes'
4. Scope of Agreement: Detailed description of claims and disputes covered by arbitration, including statutory and common law claims
5. Arbitration Procedures: Process for initiating and conducting arbitration, including selection of arbitrator and hearing procedures
6. Costs and Fees: Allocation of arbitration expenses between employer and employee
7. Governing Law: Specifies applicable federal and state laws governing the agreement
1. Class Action Waiver: Optional provision waiving right to participate in class actions, included when permitted by applicable law
2. Modification Provisions: Terms for modifying the agreement, typically included in longer-term employment relationships
3. Severability: Provision maintaining validity if portions are found unenforceable, recommended for jurisdictions with strict enforcement
4. Opt-Out Provisions: Terms allowing employee to opt out of arbitration within specified timeframe, included when offering voluntary program
1. Arbitration Rules: Detailed procedures from chosen arbitration organization (e.g., AAA Employment Arbitration Rules)
2. Excluded Claims: Comprehensive list of specific claims not subject to arbitration
3. Fee Schedule: Detailed breakdown of arbitration costs and fee allocations between parties
Relevant legal definitions
Clauses
Agreement to Arbitrate
Scope of Agreement
Covered Claims
Excluded Claims
Arbitration Procedures
Selection of Arbitrator
Class Action Waiver
Confidentiality
Cost Allocation
Discovery Rights
Notice Requirements
Representation Rights
Enforcement
Modification
Severability
Governing Law
Venue
Time Limits
Opt-Out Rights
Acknowledgment
Entire Agreement
Survival
Signatures
Relevant Industries
Relevant Teams
Relevant Roles
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