The ability of an employer to require employees to submit claims to final and binding arbitration in lieu of exercising statutory rights to litigate changes the balance of power between labor and business.
Usually employers have the trend of mandating that employees sign a release of litigation rights in an employment offer package or job application. This often serves the employer because arbitrations can cost up to $25,000 for the individual.
Depriving employees of the right to litigate and requiring them to arbitrate may affect the perception of justice even when employers pay for the arbitration because the employees may think that the decision is not indifferent when one party is paying for the entire dispute resolution.
When there is a discrimination or claim that allows for administrative agency remedies, the plaintiff employee might consider getting the agency to defend the case. Public agencies such as the EEOC are not limited to the arbitration agreement that an employee signs with an employer. This is because the EEOC is not a party to the agreement.
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