Avoiding Litigation: The Benefits of Employment Contracts and Arbitration

Journal of Small Business Strategy, Vol. 10, No. 2, pp. 1-10, 1999

Posted: 22 Feb 2008

See all articles by James J. Coffey

James J. Coffey

State University of New York (SUNY) - Accounting

Richard A. Bernardi

Roger Williams University - Gabelli School of Business; Roger Williams University

Abstract

This research reviews the current environment in employment disputes. In an ever-increasing litigious era where it is not uncommon to see six-figure settlements, the entrepreneur needs to examine the possible legal options in the event of a lawsuit involving current or former employees. While many employment-oriented lawsuits are settled through litigation, this is a time-consuming and costly process. Indeed, due to its adversarial nature, dispute resolution through litigation can take years to settle. In contrast, one business strategy that is growing in popularity includes the use of employment contracts specifying arbitration in dispute resolution. Because arbitration is almost entirely separate from the legal system (Siegel, Sect. 586), it offers many advantages to both employers and employees.

Suggested Citation

Coffey, James J. and Bernardi, Richard A., Avoiding Litigation: The Benefits of Employment Contracts and Arbitration. Journal of Small Business Strategy, Vol. 10, No. 2, pp. 1-10, 1999, Available at SSRN: https://ssrn.com/abstract=1095364

James J. Coffey (Contact Author)

State University of New York (SUNY) - Accounting ( email )

United States

Richard A. Bernardi

Roger Williams University - Gabelli School of Business ( email )

Bristol, RI 02809
United States

Roger Williams University ( email )

Bristol, RI 02809
United States

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