For the past 45 years, employers have sought alternatives to litigating employee disputes in court. Civil court cases can cost employers large amounts of time and money to resolve, and the possibility of huge “runaway jury” awards raises the risks substantially.
Increasingly, employers have embraced arbitration as a way to curb these costs. That’s why more employers now require arbitration of employee claims as a condition of employment. But before you have all employees sign arbitration agreements, be sure to consider all the costs. You may find that arbitration isn’t the cost-effective strategy you think it is.
How arbitration works
The Michigan Arbitration Act (MAA) provides for statutory arbitration and requires arbitration agreements to provide for entry of judgment by a circuit court after the arbitration award is issued. If not, arbitration agreements are construed to provide for common-law arbitration. In that ca...(register to read more)