The Future of ADR in the Workplace

Abstract

The U.S. Supreme Court recently issued another decision endorsing the use of mandatory arbitration agreements in the workplace as a means of alternative dispute resolution of employmentrelated claims. Given the Supreme Court’s decision in Circuit City Stores, Inc. v. Adams, this article reviews the status of mandatory arbitration agreements as they apply to employment claims, in particular, claims of employment discrimination. For years, the Federal Arbitration Act has been at the center of continued controversy over employment contracts requiring arbitration of claims arising out of the employment relationship. This article focuses on the state of the law regarding the use of compulsory/mandatory arbitration agreements for employment-related disputes and reviews studies and empirical information about the cost benefit of arbitration to resolve employment-related disputes. The article includes some practical suggestions for employers who wish to consider using alternative dispute mechanisms and compulsory/mandatory arbitration.