Avoiding Litigation: The Benefits of Employment Contracts and Arbitration

Authors

  • James J. Coffey Plattsburgh, State University of New York
  • Richard A. Bernardi Rodger Williams University

Abstract

This research reviews the current environment in employment disputes. In an ever-increasing litigious era where it is not uncommon to see six-figure settlements, the entrepreneur needs to examine the possible legal options in the event of a lawsuit involving current or former employees. While many employment-oriented lawsuits are settled through litigation, this is a time-consuming and costly process. Indeed, due to its adversarial nature, dispute resolution through litigation can take years  to settle.   In contrast,  one business strategy that  is growing in popularity includes the use of employment contracts specifying arbitration in dispute resolution. Because arbitration is "almost entirely  separate from  the  legal  system " (Siegel, Sect. 586), it offers many advantages to both employers and employees.

References

American Arbitration Association (1997). National rules for the resolution of employment disputes. New York: American Arbitration Association.

Bales, R. A. (1997). Compulsory arbitration. Cornell University Press: Ithica, NY.

Beatty, J. F. and Samuelson, S. S. (1996). Business law for a new century. Boston: Little Brown and Co.

Bennett, P. ( 1996). Insurance coverage of em ployment disputes. Chicago, IL: American Bar Association.

Business Laws Inc. (1998). Employment contracts (Chap. 2). Chesterland, OH: Business Laws Inc.

Business Laws Inc. (1998). Employment contracts (Chap. 8). Chesterland, OH: Business Laws Inc.

Chew, P. K. (1998). Directors' and officers' liabil ity. New York: Practising Law Institute. Clark, Boardman, & Callaghan. ( 1998). Em ployment discriminator coordinator. Deerfield, IL: West Group.

Elkouri, F. & Elkouri, E. A. (1997). How arbitration works (Vol. 2). Eds. Volz, M. M. and Goggin, E. P., National Affair Inc.

Israel, R. ( 1998). National arbitration/mediation, metropolitan coroorate counsel. from Lexis­Nexis.

Littler, Mendelson, Fastiff, Tichy, & Mathiason. ( 1998). Evaluating and using em ployer­ initiated arbitration policies and agreements: preparing the workplace for the twenty­ first century, In Alternative dispute resolution in the em ployment context. Vol. 2, Chap. 2, Ed. Hancock, W. A., Chesterland, OH: Business Laws Inc.

Lusky, P. M. (1997). Slam the door on employee lawsuits. Franklin Lakes, NJ: Career Press. Olson, J F. & Hatch, J. 0., Ill. (1997). Director and officer liability. St. Paul, MN: West Group.

Sellier, B. C. & Shafter, H. S. ( 1997). Confidentiality of arbitration proceedings, Law Journal, ill(48), New York: West Law.

Siegel, D. D. (1997). New York law practice St. Paul, MN: West Group.

Tobias, P. H. (1997). Litigation: wrongful discharge of claims. St. Paul, MN: West Group. 36 NY Jur 2d. (1997). Damages. Rochester, NY: Lawyers Cooperative Publishing.

NY Jur 2d. (I997). Employment Relations. Rochester, NY: Lawyers Cooperative Publishing.

Downloads

Published

1999-06-17

Issue

Section

Articles

How to Cite

Avoiding Litigation: The Benefits of Employment Contracts and Arbitration. (1999). Journal of Small Business Strategy (archive Only), 10(2), 32-42. https://libjournals.mtsu.edu/index.php/jsbs/article/view/413