What is the Difference Between Arbitration and Litigation in Employment Disputes?

Arbitration and litigation are both dispute resolution mechanisms, but they differ significantly in process and exposure.

• Litigation takes place in public court before a judge or jury. Proceedings are formal, discovery is broad, and outcomes are part of the public record.
• Arbitration is a private dispute resolution process before a neutral arbitrator. It is generally faster, more confidential, and may limit procedural complexity. Properly drafted arbitration agreements may reduce exposure to class or representative actions.

However, arbitration agreements must comply with California and federal law and cannot be unconscionable.

In California employment disputes, the enforceability of arbitration agreements is frequently contested. Careful drafting is essential.