08/11/2025
Let's talk about why arbitration against your employer if you have an employment claim is bad.
First, it favors employers, not employees, and a big reason for that is financial.
In California, your employer is required by law to pay the arbitrator, not you. And that cost of arbitration is tens of thousands in excess of even a hundred thousand dollars to go all the way through an arbitration.
So the person that has to decide whether or not your civil rights were violated and how much you should get is being paid potentially in excess of a hundred thousand dollars by your employer, which is an inherent conflict of interest.
Let's talk about why arbitration against your employer if you have an employment claim is bad.
First, it favors employers, not employees, and a big reason for that is financial.
In California, your employer is required by law to pay the arbitrator, not you. And that cost of arbitration is tens of thousands in excess of even a hundred thousand dollars to go all the way through an arbitration.
So the person that has to decide whether or not your civil rights were violated and how much you should get is being paid potentially in excess of a hundred thousand dollars by your employer, which is an inherent conflict of interest.
And because of that, there's something called the repeat player effect where you have one case in your entire life, whereas the arbitrator could get hundreds, if not thousands, of cases from the employer and the insurance companies, often that represent the employers in these kinds of cases. So that is why, based on the financial reasons and the repeat player effect, why arbitration is bad along with the fact that you can appeal even if if the employer makes a mistake of the law, except in very limited circumstances, do you have appeal rights, which usually deal with an inherent conflict or undisclosed conflict of interest by the arbitrator.
As a result, arbitrations typically yield lower monetary awards, and punitive damages are very rare, which can significantly increase the value of your case by punishing and deterring wrongful employer conduct.