When you accept a job offer, you might unknowingly sign away critical legal rights. Mandatory arbitration clauses — often buried in employment contracts or handbooks — require you to resolve any workplace dispute through private arbitration instead of in a public court.
While arbitration can be quicker and more cost-effective, it often benefits employers more than employees. Why? Arbitrators are usually selected by the employer or from employer-favored panels, decisions are typically final with limited appeal rights, and the process lacks the transparency of public courtrooms.
Employees should be cautious. You may be waiving your right to sue, to join a class action, or to appeal an unfair decision. California and federal laws have started to place limitations on forced arbitration in certain cases, so it’s worth consulting an employment attorney to review your contract before signing — especially if something doesn’t feel right.
