The National Academy of Arbitrators understands that using empirical data is key to having honest conversations about the fairness of employment arbitration. A study titled “Comparative Analysis of Employment Arbitration & Employment Litigation” was conducted by distinguished scholars Harry C. Katz (Cornell University), Thomas A. Kochan (Massachusetts Institute of Technology), Lewis L. Maltby (National Workrights Institute), David Sherwyn (Cornell University), and Academy member Theodore J. St. Antoine (University of Michigan Law School). This study analyzed 14,654 court cases and 811 arbitration cases from 2019-2020, offering valuable insights that challenge prevailing assumptions.
Key findings from the study:
- Employees win more often in arbitration (19% of their cases in arbitration and 1% of their cases in court litigation).
- Employees receive higher awards in litigation.
- Employees receive awards faster in arbitration (14.8 months versus 31 months).
- Employees with claims too small to litigate are often able to arbitrate.
These findings underscore the importance of arbitration as a viable and often advantageous option for resolving employment disputes, directly countering the narrative that it is inherently biased against employees.
The NAA encourages a deeper examination of these results to ensure that arbitration remains a fair and accessible process for all parties involved.
The full study conducted can be found at: https://naarb.org/wp-content/uploads/2013/12/NAA-11123.pdf (link)