I have always been a fan of arbitration as a means of dispute resolution in business contracts as opposed to using the legal system. Arbitration — yes! Lawsuits — no!
Recently, companies have been requiring new employees to agree to a basis of employment that includes a dispute resolution technique based solely on binding arbitration. [Note: This is different, though similar, than binding arbitration in business contracts. Similar.]
The employees are being asked to give up their right to sue the company, their employer, as a condition of employment.
Good idea or nefarious overreach by the employer?
These are not contract employees, but “at will” employees. A contract employee has an Employment Agreement and the at will employee has an “understanding” or a “basis of employment” while still being subject to termination for no reason or good reason or any reason.
It is perfectly normal for an Employment Agreement to have some form of dispute resolution spelled out as part of the deal. This falls under the umbrella of “you don’t get what you deserve, you get what you negotiate.”
Today, it is reported that more than 60,000,000 US employees are working under a mandatory arbitration arrangement for employment disputes. So, it is not uncommon.
[Note: Unions have their own dispute resolution procedures as part of their collective bargaining agreement. It often is based on arbitration or a form similar.]