Some Arbitration Issues

Several arbitration issues for your consideration today. First, Ross's Employment Law Blog has an interesting article in which the NLRB holds that a mandatory arbitration policy adopted by a nonunion employer violated the National Labor Relations Act because the employees could reasonably construe the broad language in the policy to prohibit the filing of unfair labor practice charges with the Board.In yesterday's Sunday edition of the New York Times, the paper had a lengthy article regarding arbitration in securities cases and the growing unease with the arbitration process on both sides of the bar. The article notes that individuals are at a particular disadvantage in the security arbitrations setting (and frankly in any arbitration setting) due to the bias of many arbitration panels in favor of the industry institutions for which they were previously employed. On the company side, many are finding arbitration to be just as expensive and time-consuming as old-fashioned litigation.Personally, I have never been a big fan of arbitration from the viewpoint of individuals or companies. I've tried an awful lot cases and, frankly, juries usually get it right. I think the founding fathers were correct in making trial by jury a constitutional right in the first place. The Supreme Court's relatively recent decisions allowing citizens to, for all intents and purposes, be forced to give up that right by contract is increasingly being seen as a mistake by both individuals and organizations.Lastly with regard to arbitration, here are some new rules. The American Arbitration Association has issued new Rules for Arbitrations of Employment Disputes. You can find the new rules here.

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