Alternative Dispute Resolution Presents A Good Choice For Some Employers
 
September 11, 2000
 
Judith "Judy" Korchin- Miami
Michael J. "Mike" Ranallo- Chicago

With the rapid expansion of lawsuits by employees and former employees, the ever-increasing costs of litigation, and the size of jury verdicts in recent years, many employers are turning to alternative means of resolving employment disputes. Alternative dispute resolution, or “ADR” as it is commonly known, can save not only legal fees and costs, but also many “person hours” and untold energy and frustration on the part of management and human resources personnel. It can produce certainty, without endless post-trial motions and appeals. If the complaining employee remains in the work force, mediation in particular can help promote a healing process for wounded feelings and emotions which always color employment cases. ADR avoids the pitfalls of a jury made up of working individuals who frequently judge cases by their own experiences, regardless of the evidence or the instructions of the court. Arbitrators and mediators generally hold employers to a more realistic standard of behavior.

ADR can be most effective when employees know that it is available and management uses it wisely. There is a wide variety of ADR plans. Many large employers have put into place ADR plans, which commonly include an informal attempt to resolve an issue, followed by mediation if the first step does not work and arbitration if mediation fails. Some employers maintain plans in which arbitration is mandatory; however, there is pending legislation in Congress to prohibit mandatory binding arbitration in the employment arena. The results of arbitration are acceptable to the courts only when the procedures provide most of the rights available to employees in court, except for a jury trial, including that the employer pays most, if not all, of the costs of the arbitration process.

ADR is rapidly spreading to smaller employers as well as to larger ones. Holland & Knight employment lawyers have wide experience in mediation and arbitration, both as neutrals and as advocates for our clients. We also have experience in developing ADR plans for employers to put into place in different kinds and sizes of employment settings. If you would like to discuss setting up such a plan, please e-mail Kathleen Larrison, Marketing Communications Manager, klarriso@hklaw.com. We will be happy to discuss your needs and help you set up a program to save money, time and aggravation. We also can assist you with ADR in employment matters which arise in your employment setting.