Is it prudent for employers to require employees to sign mandatory arbitration agreements? There is no right or wrong answer to that question . . . just a long list of pros and cons. Proponents of mandatory arbitration often focus on factors such as confidentiality, the ability to remove the risk of a “runaway jury,” and cost. Conversely, opponents of mandatory arbitration often focus on factors such as the potential for the arbitrator to “split the baby” in an effort to appease both sides, limited discovery, cost, and limited appellate rights.
For employers who have adopted mandatory arbitration policies, the Fifth District Court of Appeal in Florida (with jurisdiction over Hernando, Lake, Marion, Citris, Sumter, Flagler, Putnam, St. Johns, Volusia, Orange, Osceola, Brevard, and Seminole Counties) recently issued an order that may make it more difficult for employers to enforce mandatory arbitration agreements, particularly arbitration agreements in employment contracts. Continue Reading