When you have a serious dispute with your employer, you may expect to take your case to court. Then you discover an arbitration clause in an employment agreement, handbook, or other document. That discovery can raise many questions. What is employment arbitration? Do you still have legal rights? Who decides the case?
Arbitration is an alternative dispute resolution method that can affect where and how you pursue an employment claim, but it does not necessarily eliminate your underlying legal rights.
Arbitration procedures are often quite different from a traditional court case. Speaking to an employment arbitration lawyer can help you understand the agreement, applicable procedures, and how to prepare the strongest possible case.
Smithey Law Group LLC is a top-rated employment law firm that provides award-winning advocacy for the people of Maryland. We can help you prepare for negotiations, mediation, arbitration, and litigation, and we can help you get the most out of any employment dispute.
What Is Employment Arbitration?
Arbitration is a form of alternative dispute resolution that can have features that are similar to a bench trial. Instead of having a judge or jury decide a dispute in court, the parties present their positions to a neutral arbitrator.
Although arbitration may resemble a trial, the procedures can differ significantly.
For example, when Maryland’s Uniform Arbitration Act applies, parties have the right to:
- Be heard,
- Be represented by an attorney,
- Present material evidence, and
- Cross-examine witnesses who appear at the hearing.
However, arbitrators do not have to follow the technical rules of evidence that apply in court. Once the arbitrator is finished reviewing the evidence and each party’s arguments, they typically hand down a decision regarding each party’s rights and obligations.
How Does Arbitration Come up in an Employment Dispute?
An employee may encounter arbitration because their employment agreement contains an arbitration provision covering certain workplace disputes. Employees and employers without preexisting contract terms may also agree to use arbitration after a dispute develops.
Employers and employees may arbitrate to address:
- Claims of employment discrimination,
- Wage disagreements,
- Wrongful termination claims,
- Disputes around severance agreements or benefits,
- Non-compete or confidentiality agreements, and
- Disagreements regarding benefits.
Whether an agreement requires arbitration can itself become a legal dispute. Under Maryland law, a party may ask a court to order arbitration if the other party refuses.
If the opposing party denies that an arbitration agreement exists, the court determines whether an agreement exists. A party disputing the existence of an agreement may also petition to stay arbitration under covered circumstances.
Ultimately, arbitration can be used to resolve numerous workplace issues (with some exceptions). Consult with a knowledgeable employment arbitration lawyer is the best way to determine whether arbitration is necessary or potentially beneficial for you.
How to Win Employment Arbitration
In general, winning an arbitration proceeding comes down to good preparation. This should start well before the proceeding.
To prepare, you may start by answering the questions below and discussing your case with an attorney. An employment arbitration attorney can review the agreement, applicable law, and procedural rules to help determine what your arbitration will actually involve and the best strategy for winning.
What Rights Do You Still Have Outside of Arbitration?
Arbitration can limit your legal options, but do not assume that signing an arbitration agreement means surrendering every employment right. For example, the U.S. Equal Employment Opportunity Commission (EEOC) notes that an arbitration agreement does not necessarily prevent an employee from filing an EEOC charge.
And Maryland’s Labor and Employment law states that an employment contract may not waive or require an employee to waive the right to seek establishment of a lien for unpaid wages.
The rights that remain available will depend on your claim and the governing law. Being aware of your rights can prevent unnecessary arguments and concessions during arbitration proceedings.
What Does Your Arbitration Agreement Say?
Read the actual agreement carefully.
It may address:
- Which claims must go to arbitration,
- Who administers the proceeding,
- How the arbitrator gets selected,
- Where the proceedings occur, and
- How costs are allocated.
Where Maryland’s Uniform Arbitration Act applies, the parties’ agreed method for appointing arbitrators generally controls. If the agreement does not provide a method, or the method fails, the law provides circumstances in which a court may appoint an arbitrator.
What Rules Will Govern the Arbitration?
In their agreement, the parties might choose a specific arbitration service to handle their disputes. And the arbitration service may have detailed procedural rules. For example, the American Arbitration Association’s Employment/Workplace Arbitration Rules provide for preliminary proceedings and exchanges of information.
You should understand your arbitration service’s rules before you start building your case. And if you are not using a specific service, you should understand applicable statutes or regulations.
Is the Arbitration Binding?
Determine whether the arbitration is legally binding before proceeding. The answer generally depends on the arbitration agreement and the applicable arbitration rules. Knowing how an arbitration decision will legally affect you before you start can help you prioritize and prepare in the correct way.
What Evidence Helps or Hurts Your Case?
After knowing what rules apply, understanding how to win employment arbitration depends on an objective evaluation of the evidence.
You may need to collect:
- Relevant emails,
- Text messages,
- Personnel documents,
- Performance reviews,
- Disciplinary records,
- Policies,
- Pay records,
- Contracts,
- Witness information, and
- Other documents.
Remember the scope of your arbitration agreement so that you can focus on gathering the strongest and most relevant evidence for your case. You should also build a timeline and evaluate the evidence that supports your employer’s position as seriously as the evidence that supports yours.
How Do You Enforce an Arbitration Award?
Winning an award in arbitration may not always end the matter. Where Maryland’s Uniform Arbitration Act applies, a party may petition a court to confirm an arbitration award.
Unless a timely application to vacate, modify, or correct the award has been filed, the statute directs the court to confirm it. Once the court enters judgment on an order that confirms the award, that judgment may be enforced like other judgments.
The statute also provides limited procedures for challenging awards. You may petition to modify or correct an award for specified issues, such as evident miscalculations, certain evident mistakes, or certain matters of form.
You may also petition to vacate the award because of:
- Corruption,
- Fraud,
- Partiality, or
- Other misconduct.
Under Maryland law, the grounds for changing or vacating an award are limited, so you should understand your options before starting proceedings.
What Are the Pros and Cons of Employment Arbitration?
Arbitration can offer a more flexible procedure than traditional litigation.
The applicable rules may:
- Permit streamlined information exchanges,
- Make the process more private,
- Provide flexible hearing procedures, and
- Allow presentation of evidence without strict adherence to courtroom evidentiary rules.
These same differences can create disadvantages because there may be fewer discovery options or protections when submitting evidence. A binding decision can also be difficult to overturn because the grounds for judicial review may be narrow under the applicable arbitration laws.
Whether arbitration benefits you depends on the agreement, the governing rules, your claims, the available evidence, and the circumstances of your case.
How Can an Employment Arbitration Lawyer Help?
An employment arbitration attorney can:
- Review whether an arbitration agreement applies,
- Determine which claims fall within it,
- Analyze deadlines,
- Evaluate evidence,
- Handle information exchanges,
- Prepare witnesses,
- Present legal arguments,
- Question witnesses, and
- Pursue appropriate steps after an award.
Arbitration can be a tricky and daunting process, so having attorney representation can be vital to navigating the process well.
You Can Rely on Smithey Law Group
When figuring out what employment arbitration is for your case, you don’t have to do it alone. Smithey Law Group is a leader in the employment law community and represents employees in Maryland workplace disputes.
If an arbitration agreement may affect your employment claim, contact Smithey Law Group LLC to discuss your circumstances and the options that may be available to you. Please contact us online or by phone to schedule a case review.
