{"id":357752,"date":"2016-04-04T10:45:26","date_gmt":"2016-04-04T15:45:26","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/hiring-process\/employment-arbitration-agreements.html"},"modified":"2026-02-16T14:44:20","modified_gmt":"2026-02-16T19:44:20","slug":"employment-arbitration-agreements","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/hiring-process\/employment-arbitration-agreements.html","title":{"rendered":"Should I Sign an Arbitration Agreement at Work?"},"content":{"rendered":"\n
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Should I Sign an Arbitration Agreement at Work?<\/h1>\n\n
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\n By Lisa Burden, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

An employment <\/span>arbitration agreement<\/span> is a legal contract that requires you to give up your right to sue your employer in court and instead resolve disputes through private arbitration<\/span>, where a neutral third party makes binding decisions. These agreements are often required as a condition of employment<\/span>. Whether you should sign an arbitration agreement<\/span> depends on your situation, but be sure to understand what you’re agreeing to first.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Your new employer just handed you an arbitration agreement<\/span> to sign. They say it\u2019s all part of the onboarding<\/span> process, but an alarm bell rings in your head. Should you sign it? It depends on your situation and bargaining power, but you should understand what you’re agreeing to before you sign.<\/p>\n

An employment <\/span>arbitration agreement<\/span> means you give up your right to sue your employer in court and must instead resolve disputes through private arbitration<\/span><\/a>. This is a legal process in which a neutral third party (rather than a judge) makes binding decisions.<\/p>\n

This article explains what arbitration agreements<\/span> mean for your rights, the pros and cons of signing, and how to negotiate better terms if you must sign. Over half of private-sector workers are now subject to these agreements, so it’s important to know your options.<\/p>\n

If you\u2019re concerned about entering into an arbitration agreement<\/span> or other contract with your employer, consider speaking with a local employment attorney<\/a> before you sign. They can explain how an arbitration agreement<\/span> might impact your situation and walk you through your options.<\/p>\n

What Is an Employment <\/span>Arbitration Agreement<\/span>?<\/h2>\n

Arbitration is a method of alternative dispute resolution<\/span><\/a>. Under such an agreement, workers can’t pursue legal claims against their employer in court. Instead, they must allow an arbitrator<\/span> to handle their grievances. The arbitrator<\/span>‘s decision<\/span> is generally binding and final.<\/p>\n

Most arbitration provisions also include a class-action waiver<\/span>. A class-action waiver<\/span> is a legal provision that prevents you from participating in a group lawsuit<\/a> against your employer.<\/p>\n

Employers increasingly require workers to sign arbitration agreements<\/span> as a condition of employment<\/span>. These agreements often appear buried in employment contracts<\/span> or employee handbooks<\/span>. More than half of all private-sector non-union employees<\/a> are now subject to arbitration agreements<\/span>, up from just 2% in 1992.<\/p>\n

Can I Sue My Employer if I Sign an Arbitration Agreement<\/span>?<\/h2>\n

In general, you can’t take your employer to court if you signed an arbitration agreement<\/span>. If your employment contract<\/span> includes an employment arbitration clause<\/span>, you agreed not to pursue legal action against your employer in court. Instead, you must settle any employment-related disputes with your employer through arbitration<\/u><\/a>.<\/p>\n

Some types of claims are exempt from mandatory <\/span>arbitration<\/span> agreements<\/span>. For example, your employer can’t force you to sign an arbitration clause<\/span> that covers claims involving workplace sexual misconduct under the 2022 Ending Forced Arbitration<\/span> of Sexual Assault<\/span> and Sexual Harassment<\/span> Act<\/u><\/a>. This federal law<\/span> provides that if you’re alleging sexual harassment<\/span> or sexual assault<\/span>, you may pursue your claim in court rather than arbitration, regardless of whether you previously agreed to arbitrate<\/span>.<\/p>\n

Arbitration agreements<\/span> only apply between you and your employer. You may still file complaints with government agencies. For example, if you believe your employer has discriminated against you, you can file a complaint with the Equal Employment Opportunity Commission<\/span><\/u><\/a> (EEOC). The EEOC can take your case to court because the arbitration agreement<\/span> you made with your employer does not bind state or federal agencies.<\/p>\n

What Rights Do You Lose in Arbitration?<\/h2>\n

Some of the downsides of arbitration include:<\/p>\n