by Larry D. Smith, Esq., Ogletree Deakins, San Antonio
It is no secret litigation is expensive. Defense costs in single-plaintiff employment cases can easily reach $150,000 to $250,000 through trial. Class and collective actions, where plaintiffs often number in the thousands, can be exponentially more costly to defend, depending in part on the size of the class, the venue of the lawsuit, the lawyers involved, and the length of the litigation.
For years, employers have utilized arbitration agreements as a line of defense against expensive litigation, particularly against the onslaught of often meritless class and collective actions. However, challenges to the legality of arbitration agreements by plaintiffs in recent years have cast doubt on the viability of arbitration as a cheaper, less cumbersome alternative to litigation.
In recent years, courts have consistently supported employers’ use of arbitration agreements in empl...(register to read more)
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