The Litigation Boutique LLC

Colorado employment contract: Arbitration agreements

Before signing one's life away to a new employer, taking time to read in full what one is signing is really a must. A lot of information is included in an employment contract. Colorado residents who are not careful could end up signing away their rights to pursue legal actions against their employers.

Over the last 15 years, more business owners have opted to include arbitration agreements in their employment contracts. By agreeing to arbitration, one is saying that he or she is willing to use this alternative dispute resolution method to handle any issues that may arise during one's employment. Is that such a bad thing?

Sometimes ADR methods are the preferred route for everyone involved. Arbitration can be less expensive than going to court, and it can take less time to resolve the issue at hand. The downsides to arbitration, however, are rather significant. For instance, there will be no judge or jury to hear the case, only the arbitrator. That may sound nice and less formal, but if the decision does not go one's way, there is no appeals process; the decision is generally considered final.

Giving up the abilities to take legal action or appeal an arbitrator's decision can really hurt Colorado residents down the line. If an employment contract includes an arbitration agreement, can one fight to have it removed? It may be possible. Before signing, an employment law attorney can review the contract and even negotiate the terms of the contract in order to make sure it serves the best interests of the client.

Source: FindLaw, "Employment Arbitration Agreements", Accessed on July 13, 2017

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