This sixth installment of our series discusses the elimination of jury trials by way of employment arbitration agreements. In today’s complex legal landscape, employers are increasingly turning to arbitration agreements as a strategic tool to manage employment disputes. By incorporating arbitration clauses into employment contracts or using stand-alone arbitration agreements for employees without contracts, businesses can effectively eliminate the uncertainties and potential pitfalls associated with jury trials. This article explores this key advantage of using arbitration agreements, including cost-effectiveness, speed, confidentiality, and control over the process, and how these benefits contribute to more predictable outcomes and reduced litigation risks.
The sixth compelling reason: Eliminating jury trials
Arbitration provides parties with greater control over the dispute resolution process. Employers and employees can mutually select an arbitrator with expertise relevant to the specific issues at hand, ensuring a more informed and fair decision-making process. Additionally, arbitration allows for more flexible scheduling and procedural rules, which can be tailored to the needs of the parties involved. This level of control is often absent in traditional litigation, where parties are subject to the court’s schedule, procedural mandates, and decisions by juries of lay people.
Although bench trials, trials in which the judge acts as the fact finder, are available to resolve employment disputes in court, in virtually every employment litigation, plaintiff’s counsel will choose to have a jury of the plaintiff’s peers decide the outcome. A properly drafted arbitration agreement that waives the right to jury trials leaves the fate of the case in the hands of the arbitrator, typically a lawyer or former judge with substantial employment law experience, which leads to more predictable results.
One of the most compelling reasons for employers to adopt arbitration agreements is the potential for significant cost savings. Traditional litigation can be prohibitively expensive, with costs escalating due to prolonged court proceedings, extensive discovery, and the unpredictability of jury awards. As discussed in prior installments of this series, arbitration, on the other hand, employs streamlined procedures and limited discovery, which can substantially reduce legal fees and other related expenses. By opting for arbitration without a jury, employers allocate resources more efficiently and focus on their core business operations.
To be sure, the drafting of a jury waiver in an arbitration agreement should be undertaken carefully. As with all material terms involving a waiver of a right, the drafter wants to ensure that the waiver is “knowing and voluntary.” One way to demonstrate the knowing and voluntary nature of the waiver by the signatory is to make the jury waiver provision conspicuous. Specifically, jury waivers in arbitration agreements should be made to stand out, so they are not lost in the “fine print.” Often this is accomplished by using a bold font, all caps, or both for the waiver provision.
As to the value of the waiver, arbitration offers a faster resolution to disputes compared to the often lengthy process of litigation. Indeed, eliminating the complexities and vagaries of jury selection has an outsized effect on streamlining and simplifying arbitration proceedings. Court dockets are notoriously congested, leading to delays, exacerbated by machinations associated with jury selection, that can extend for months or even years. In contrast, arbitration provides a more expedited timeline, allowing parties to resolve their disputes in a matter of months. This swifter resolution not only minimizes disruption to business operations but also enables employers and employees to move forward without the lingering uncertainty of an unresolved legal matter.
By eliminating the unpredictability of jury trials, arbitration can also lead to more foreseeable outcomes. Juries, composed of laypersons, are more susceptible to being swayed by emotions or misunderstandings of complex legal issues, resulting in uneven verdicts. In contrast, arbitrators are typically experienced legal professionals who base their decisions on the merits of the case and applicable law. This predictability can significantly reduce litigation risks for employers, providing a clearer understanding of potential liabilities and outcomes.
In sum, by eliminating jury trials, arbitration provides a cost-effective and speedy means of resolving conflicts, while granting parties greater control over the process. These advantages contribute to more predictable outcomes and reduced litigation risks, making arbitration an attractive option for businesses aiming to protect their interests and maintain a harmonious workplace. As the legal environment continues to evolve, employers should consider the strategic implementation of arbitration agreements with jury trial waivers as a vital component of their risk management strategy.
