subject: Employee Rights and Arbitration Agreements [print this page] Employers insist that arbitration is more efficient, convenient, and cost-effective in comparison to formal hearings. Even when the business splits the cost of an arbitrator, it is more expensive than the cost of a judge. Many times, arbitrator fees are so overwhelming that it is not uncommon for someone without work or financial stability to fall short of the financial requirements. Should the employee be unable to afford the arbitrator, they cannot have their case tried. Without a verdict, the employer does not have to award compensation. The process rarely results in a fair award granted to the employee and little reprimand for the employer.
