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What you should know about employment arbitration

While running a business in Miami, Florida, you want to believe your employees will be loyal to your company and ethical in their work practices. When a dispute arises, a lawsuit could be devastating to your bottom line. However, you also do not want to allow an unscrupulous employee to destroy your business. At Welbaum Guernsey, we believe that arbitration is often a way to resolve a dispute without a costly settlement or the expense and potential negative press of a lawsuit.

According to Chron.com, arbitration clauses are often included in employment contracts now due to the litigious nature of employees in many industries. Once your employee has signed the agreement, he or she will not legally be able to take you to court without first entering into the arbitration process. Honest employees should not find this daunting.

To begin the process, an employee with a dispute would make a written claim, and then you would respond to it, also in writing. These documents are sent to an arbitrator, who is neutral and in a position to determine whether the claim is valid. You and your employee would be able to provide evidence, just as you would in court, and any witnesses would testify under oath.

Adding an arbitration clause to your employment agreements has benefits for both you and your employees. For example, this method of dispute resolution rarely becomes public knowledge, unlike a typical lawsuit, and the process is much faster from beginning to end. By signing an arbitration clause before a situation arises, your employee is less likely to approach the agreement with negativity. Our page on employment contracts can provide you with more information about arbitration.

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