Compulsory Arbitration of Employment Claims: A Practical Guide to Designing and Implementing Enforceable Agreements

This article offers a comprehensive guide to the rise and implementation of compulsory arbitration as a mechanism for resolving employment disputes in the nonunion sector. It traces the legal evolution from collective bargaining grievance procedures to arbitration agreements enforced through the Federal Arbitration Act (FAA), especially in light of landmark cases like Gilmer v. Interstate/Johnson Lane Corp. The article also addresses judicial concerns regarding fairness, due process, and statutory rights, and proposes key procedural safeguards necessary to ensure enforceability. The guide provides practical recommendations for employers to design arbitration agreements that are both legally sound and fair to employees and explains the practical steps taken during the arbitration process.