My Employer Asked Me to Sign an Arbitration Agreement. Now What?

Many employees are asked by their employer, either at the time of their hire or sometime during their employment, to sign an arbitration agreement. This can be a stand-alone agreement or a clause in an employment contract or handbook. Such an agreement asks the employee to agree that if they have a grievance with their employer, they will settle the dispute using binding arbitration rather than litigation. On one hand, arbitration is typically cheaper and resolves disputes more quickly than going to court, which can be very expensive and take months or even years to conclude. On the other hand, an employee who agrees to resolve any disputes using binding arbitration often gives up their rights to what may be more lucrative, more equitable, or more just compensation through the legal system.