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Employee Voluntary Arbitration Agreement: What It Is and How It Works

An employee voluntary arbitration agreement (EVAA) is a contract between an employer and an employee that sets out the terms and conditions under which disputes between the parties will be resolved through arbitration rather than litigation. In essence, an EVAA is a way for employers and employees to settle disputes in a way that is faster, less expensive, more private, and less adversarial than traditional litigation.

Arbitration is a form of alternative dispute resolution in which the parties agree to submit their dispute to a neutral third party (an arbitrator) who will hear their arguments, review the evidence, and render a binding decision. Unlike in litigation, where the parties have no say in who the judge will be, in arbitration the parties can select an arbitrator with expertise in the subject matter of their dispute, and who they believe will be fair and impartial.

One of the key benefits of an EVAA is that it can help to avoid costly and time-consuming court battles. Litigation can drag on for years, with multiple hearings, depositions, and appeals. In contrast, arbitration can be completed within a matter of months, with a single hearing and limited discovery.

Another advantage of an EVAA is that it can provide a more favorable forum for resolving disputes. In many cases, arbitrators are experts in the industry or field at issue, which means they are better equipped to understand complex technical or regulatory issues. Additionally, arbitrators are not bound by the same strict rules of evidence and procedure as judges, which can make it easier for parties to present their case and have their evidence admitted.

One potential downside of an EVAA is that it can limit an employee`s ability to bring a claim in court. By signing an EVAA, an employee agrees to waive their right to sue their employer in court for any claims covered by the agreement. Instead, they must bring their claims through arbitration. While this can be beneficial for employers who want to avoid the unpredictability and expense of litigation, it can be problematic for employees who may feel that they are giving up their rights to a fair and impartial trial.

Despite these concerns, research has shown that EVAA`s are becoming increasingly common in the workplace. According to a recent survey by the Society for Human Resource Management, over 55% of U.S. companies have an EVAA in place. As such, it is important for employees to understand what they are signing when they agree to an EVAA and to carefully review the terms of the agreement before signing.

In conclusion, an employee voluntary arbitration agreement is a contract that allows employers and employees to settle disputes through arbitration rather than litigation. While an EVAA can be beneficial in many ways, it is important for employees to fully understand the terms of the agreement before signing, and to seek legal advice if they have any concerns.