What is Employment ADR?
Employment disputes happen every day. But often, they lead to litigation for resolution. First, that can create increased animosity between the employee and the business. And second, it ousuallytakes considerable time and costs. However, employment ADR is a proactive and efficient approach to resolving workplace disputes. It offers an often-effective alternative to litigation.
Alternative dispute resolution programs empower employers and employees to find common ground. Their goal is to reach a mutually acceptable resolution with the help of a neutral third party.
In doing so, the process mitigates time and expenses. It also seeks to avoid destroying relationships.
ADR Addresses a Range of Workplace Conflicts
Last year, workers netted settlements worth nearly $2 billion. They stemmed from employment discrimination cases, ERISA, the FLSA/WARN Act, and EEOC enforcement.
Alternative dispute resolution can help avoid a legal mess. Employment ADR can effectively address various types of workplace conflicts, including but not limited to:
- Discrimination and Harassment: ADR can help resolve conflicts related to gender, race, age, or disability discrimination. The process is also beneficial for cases of workplace harassment.
- Wrongful Termination: Seek fair resolutions for disputes arising from employee terminations, ensuring a just outcome for all parties involved.
- Wage and Hour Disputes: Settle disagreements related to compensation, overtime, and other wage-related matters. Equally important, you can ensure compliance with labor laws.
- Contract Disputes: Quickly and cost-effectively resolve contract disputes, including non-compete agreements and employment contracts.
- Workplace Conflicts: Address formal complaints, disputes, conflicts among team members, or issues related to workplace policies and procedures.
Employment ADR Options
You can use several ADR processes for employment cases. For example, many begin with good, old-fashioned negotiation. Those negotiations typically include an attorney representing each party. If that doesn't work, there are other formal ways to resolve disputes with the help of a neutral third party.
Mediation
A neutral mediator facilitates communication between the parties. They help identify issues and explore solutions. However, the mediator's solution isn't binding.
Nonetheless, the mediation process enjoys a high success rate, over 85%.
Arbitration
With arbitration, an impartial arbitrator or panel reviews the evidence and makes a binding decision. That's one considerable difference versus mediation. In addition, arbitration is somewhat more formal than mediation, using some court proceedings like rules of evidence.
The employer and employee present their case, subject to cross-examination. Afterward, the arbitrator makes a binding decision.
You can involve an attorney or forgo one altogether.
Other ADR Processes for Employment Disputes
Although mediation and arbitration represent the most common employment ADR options, others are available.
Early neutral evaluation (ENE) allows both parties to present their cases to a neutral evaluator. They offer an opinion of the relative strengths and weaknesses of each case. They also provide insight into appropriate solutions. However, their insight isn't binding.
Peer review involves a panel of industry experts or peers. They review the case and recommend a solution that can be binding or non-binding. This employment ADR technique works well with professional misconduct and ethics violations in the workplace.
Unlike format court proceedings, it's worth noting that you can conduct alternative dispute resolution cases online using video conferencing.
Benefits of Employment ADR vs. Litigation
As mentioned, litigation is time-consuming. It can take months or years to reach a verdict. That adds legal expenses and frustration to the process.
Alternative dispute resolution avoids all that. If both parties cooperate, you can reach a solution in days or weeks versus months or years. As an employer that avoids expenses. More importantly, it prevents you from disruptions to running your business.
Alternative Dispute Resolutions Costs Less
The average hourly rate for law firms is generally over $275. So, you can run up a bill quickly just by preparing your case. Throw in additional back and forth and possible reversals, and your costs escalate.
That's only the cash side of the equation. Your time is equally valuable.
Employment ADR drastically cuts costs. Most techniques don't require an attorney. Even if you involve one, their involvement is more for reality checks. That reduces hourly expenses.
ADR Offers More Creative and Effective Solutions
If you move to litigation, a judge decides your outcome. That outcome is binding. The judge may often be unfamiliar with how your business operates. So, they base their decision on the letter of the law.
With Employment ADR, especially arbitration, you work with someone familiar with your issues. Typically, an arbitrator knows about business dealings.
As a result, they can be more creative and present less one-sided, winner-take-all solutions. They can create a more blended solution that meets each party's concerns.
Although arbitration is binding, you can benefit similarly from mediation sans a binding decision. One other important consideration is that ADR processes are private. So, sensitive information about your business remains confidential. You won't have to worry about reading about your case in the local news.
ADR Looks to Preserve Relationships
Court proceedings pit one side against another. That's a surefire way to create animosity. Employment ADR allows both parties to be heard. You also have an opportunity for some give and take, which is impossible with litigation.
That can keep a good working relationship between employer and employee that litigation can quickly destroy.
Resolve Your Dispute with Employment ADR
As a leading law firm serving Montgomery County and Bucks County, we're familiar with litigation. Our attorneys see the inside courtroom routinely. But we're also aware of the benefits of alternative dispute resolution.
Talk to us about your issue. We can inform you if Employment ADR is a good route for addressing your conflict. Our law offices are in Doylestown and Norristown, PA.
