Individual Employment Rights Arbitration in the U.S.:Actors and Outcomes

Abstract

This study examines disposition statistics from 2,211 employment arbitration cases administered over a nine year period by the American Arbitration Association (AAA) to investigate the process of dispute resolution in this new institution of employment relations. We find that the institutional structure of arbitration affects employee outcomes, in particular win rates and award amount, raising concerns about systemic employer advantage. This study provides evidence of a significant repeat employer-arbitrator pair effect; employers that use the same arbitrator on multiple occasions win more often relative to employers appearing before an arbitrator for the first time. Employee win rates are higher in California and lower in Texas compared to those filed in all other states. Female arbitrators and members of the National Academy of Arbitrators (NAA) render awards in favor of employees less often than do male arbitrators and non-NAA members. And former judges award higher damages, on average, than arbitrator...