Reference no: EM133177474

Mandatory dispute resolution is where employers require applicants to agree to mandatory alternative dispute resolution (usually arbitration). This means that the employee gives up the right to sue the employer if they have a disagreement, or for virtually any reason. Companies have sought this alternative mainly as a way to reduce soaring legal costs associated with defending against lawsuits that may, or may not, have merit. They argue that this alternative gives just as fair results without the high cost of litigation.

Opponents are attacking mandatory binding arbitration because they believe that too many employee rights are being stripped away.