Welcome to Littler´s Employment Law Quiz! Fine-tune your knowledge of employment law while improving your employee relations skills at the same time. You can test yourself or send this quiz around to your managers. Good luck!

Employment Arbitration Agreements

Which of the following are NOT among the advantages of implementing a binding arbitration agreement as part of the hiring process?

A. Reduced litigation costs.

B. Faster resolution of disputes.

C. Greater protection of the parties´ privacy.

D. Increased predictability of results.

E. Increased ability to appeal unfavorable results.

The correct answer is E. A recent study concluded that arbitration results in a 20% cost savings to the party. In the employment context, arbitration could result in at least a 50% reduction in litigation costs. Traditional litigation is often a time consuming process; arbitration generally offers faster resolutions, usually resolving a matter within 10 months. Arbitration offers greater privacy than a public courtroom where disputes may be highly publicized, depending upon the nature of the dispute and the parties involved. Generally an arbitrator has a proven track record because the arbitrator´s previous decisions, when available, can provide insight as to how he or she decides a case. The ability to review previous arbitration decisions provides increased predictability. In litigation, there is very little predictability with a jury. However, it is more difficult to appeal an adverse arbitration decision, and, thus, increased appellate options is not an advantage of arbitration.