Abstract
Firms are increasingly turning to the controversial practice of employment arbitration to resolve workplace disputes. Yet, little is know about how decisions are made by employment arbitrators or how their decisions compare to those made in traditional dispute resolution forums. This study uses a policy-capturing design and hierarchical linear modeling to compare how decisions about termination cases are made by employment arbitrators, labor arbitrators, and jurors. The results indicate significant differences in the overall willingness to uphold termination, with labor arbitrators being the most likely to rule in favor of the employee, followed by jurors, employment arbitrators judging statutory and for-cause claims, and employment arbitrators judging statutory-only claims. Significant differences were also observed between categories of decision-makers in the weight given to procedural compliance, evidence of discrimination, employee work history, and personal mitigating circumstances.
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