At your company, something that you love is working with all your employees. What you never wanted to see happen was for an employee to get hurt or to feel discriminated against.

Unfortunately, that kind of situation can happen and put you in a precarious position. That’s one reason why an employment arbitration agreement can be beneficial for your company. With an arbitration clause in your employment contract, you can ask that the employee you have an issue with to arbitrate first.

If an employee signs an arbitration agreement, then they won’t be able to sue you in court in most cases. Any disputes will need to go through arbitration. This method is still similar to going to court, but it is private and generally less expensive and time-consuming.

With arbitration, you should remember that the legal claim is going to be heard by a single, neutral third party. Employers usually have access to more evidence and documentation. Additionally, arbitration decisions aren’t usually appealable. This can be good if the arbitrator makes a decision in your favor, but it can be a negative if they come up with a decision that favors your employee.

Beneficially, arbitration is less formal, which may save you time and money in the long run. It’s usually more efficient and could take as little as a few weeks or months compared to the year or longer a trial could take.

Your attorney can talk to you more about arbitration and if you want to add an arbitration clause to your employment contracts in the future. It could be a good way to protect your business’ interests.