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PHR · Question #157

Herb is the HR Professional for his organization. He is preparing to hire a new employee, Hans, to the firm. Herb has asked Hans to agree, in writing, to mandatory arbitration as part of the…

The correct answer is A. It means that Hans and the organization must settle all disputes, if any arise, through a neutral. A mandatory arbitration agreement requires both parties to resolve disputes through a neutral third party rather than through litigation in court.

Employee and Labor Relations

Question

Herb is the HR Professional for his organization. He is preparing to hire a new employee, Hans, to the firm. Herb has asked Hans to agree, in writing, to mandatory arbitration as part of the employment offer. What does this agreement mean?

Options

  • AIt means that Hans and the organization must settle all disputes, if any arise, through a neutral
  • BIt means that Hans must file all legal complaints with the organization's attorney, before filing a
  • CIt means that Herb's firm can research Hans to determine if he's had any lawsuits.
  • DIt means that Hans cannot work for competitors without the written permission of theemployer.

How the community answered

(36 responses)
  • A
    83% (30)
  • B
    11% (4)
  • C
    3% (1)
  • D
    3% (1)

Why each option

A mandatory arbitration agreement requires both parties to resolve disputes through a neutral third party rather than through litigation in court.

AIt means that Hans and the organization must settle all disputes, if any arise, through a neutralCorrect

Mandatory arbitration is a legally binding agreement in which both the employee and employer waive the right to a jury trial and instead submit any disputes to a neutral arbitrator or arbitration panel. The arbitrator's decision is typically final and enforceable, replacing traditional court proceedings as the mechanism for dispute resolution.

BIt means that Hans must file all legal complaints with the organization's attorney, before filing a

Filing complaints with the organization's attorney describes an internal grievance procedure, not arbitration, which involves a neutral third party outside the organization.

CIt means that Herb's firm can research Hans to determine if he's had any lawsuits.

Researching a candidate for prior lawsuits describes a background check or due-diligence process, not an arbitration agreement.

DIt means that Hans cannot work for competitors without the written permission of theemployer.

Restricting work for competitors describes a non-compete or non-solicitation clause, which is a separate and distinct type of employment agreement.

Concept tested: Mandatory arbitration clause in employment agreements

Source: https://www.eeoc.gov/policy/docs/mandarb.html

Topics

#mandatory arbitration#employment agreement#dispute resolution#pre-employment

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