New Podcast Episode: What Employers Need to Know About Arbitration Clauses

Arbitration clauses are everywhere in employment relationships these days. But are they right for your company?

That’s the question I tackle with my colleague Emily McDonough Souza in our latest episode of “From Lawyer to Employer.”

Our theme for this episode is simple: think before you ink. (Oh, how I wish I had thought of that title before we published it.)

Arbitration can offer real advantages for employers — speed, privacy, and a decision-maker who focuses on the law rather than emotion. But it’s not a default setting, and there are tradeoffs that every employer should understand before rolling out an arbitration program.

In the podcast, Emily and I discuss some of the most common questions we get from clients:

• What are the real benefits of arbitration for employers?
• What are the risks and potential pitfalls?
• How do you draft a clause that will actually hold up in court?
• What happens when your onboarding process doesn’t clearly establish employee assent?

We also discuss a recent Second Circuit decision that serves as a good reminder of what courts look for when evaluating these agreements — clear language, proper notice, and unmistakable delegation clauses if you want the arbitrator deciding threshold questions. The message from the court was straightforward: if the agreement is ambiguous or the company can’t show clear assent, the employer won’t get arbitration.

For HR professionals and business leaders thinking about implementing arbitration provisions, or those who already have them and want to make sure they’re enforceable, this 20-minute episode should give you practical guidance on what to consider.

You can find the podcast on Spotify, Apple Podcasts, and wherever you get your podcasts.

Be sure to subscribe so you don’t miss an episode. My thanks to Emily for joining me on this one.