Employment - American Arbitration Association

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EmploymentArbitration Rules and Mediation ProceduresAvailable online atadr.org/employmentRules Amended and Effective November 1, 2009Fee Schedule Amended and Effective July 1, 2016

Regional Vice Presidents and Assistant Vice PresidentsStates: Delaware, District of Columbia, Maryland,New Jersey, Pennsylvania, West VirginiaKenneth EggerVice PresidentPhone: 215.731.2281Email: EggerK@adr.orgStates: Alaska, Arizona, California, Colorado,Hawaii, Idaho, Montana, Nevada, Oregon, Utah,Washington, WyomingJohn EnglishVice PresidentPhone: 619.239.3051Email: EnglishJ@adr.orgStates: Alabama, Arkansas, Florida, Georgia,Mississippi, North Carolina, South Carolina,VirginiaCharles DorseyAssistant Vice PresidentPhone: 866.686.6024Email: DorseyC@adr.orgStates: Rhode IslandHeather SantoAssistant Vice PresidentPhone: 866.293.4053Email: SantoH@adr.orgStates: Louisiana, New Mexico, Oklahoma, TexasStates: Illinois, Indiana, Iowa, Kansas, Kentucky,Michigan, Minnesota, Missouri, Nebraska,North Dakota, Ohio, South Dakota, Tennessee,WisconsinJan HoldinskiVice PresidentPhone: 248.352.5509Email: HoldinskiJ@adr.orgPatrick TatumVice PresidentPhone: 559.490.1905Email: TatumP@adr.orgStates: Connecticut, Maine, Massachusetts,New Hampshire, New York, VermontAnn Lesser, Esq.Vice PresidentPhone: 212.484.4084Email: LesserA@adr.orgCase Management Vice President and Assistant Vice PresidentsCharles DorseyAssistant Vice PresidentPhone: 866.686.6024Email: DorseyC@adr.orgPatrick TatumVice PresidentPhone: 559.490.1905Email: TatumP@adr.orgAdministers cases in FL, GAAdministers cases in AK, AZ, AR, CA, CO, HI, ID,IL, IA, KS, LA, MN, MS, MO, MT, NE, NV, NM, ND,OK, OR, SD, TX, UT, WA, WI, WYHeather SantoAssistant Vice PresidentPhone: 866.293.4053Email: SantoH@adr.orgAdministers cases in AL, CT, DE, DC, IN, KY, ME,MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN,VT, VA, WV2RULES AND MEDIATION PROCEDURESAmerican Arbitration Association

Table of ContentsIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Role of the American Arbitration Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Legal Basis of Employment ADR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8The Fairness Issue: The Due Process Protocol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9AAA’s Employment ADR Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9AAA’s Policy on Employment ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Costs of Employment Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Designing an ADR Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Alternative Dispute Resolution Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Open Door Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Ombuds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Peer Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Internal Mediation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Fact-Finding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Types of Disputes Covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Employment Arbitration Rules and Mediation Procedures. . . . . . . . . . . . . . . . . . . . . 151. Applicable Rules of Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152. Notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153. AAA as Administrator of the Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164. Initiation of Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165. Changes of Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176. Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177. Administrative and Mediation Conferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178. Arbitration Management Conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189. Discovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1910. Fixing of Locale (the city, county, state, territory, and/or country of the Arbitration). 1911. Date, Time and Place (the physical site of the hearing within the designated locale)of Hearing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1912. Number, Qualifications and Appointment of Neutral Arbitrators. . . . . . . . . . . . . . . . 2013. Party Appointed Arbitrators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Rules Amended and Effective November 1, 2009. Fee Schedule Amended and Effective July 1, 2016.EMPLOYMENT RULES 3

14. Appointment of Chairperson by Party-Appointed Arbitrators or Parties. . . . . . . . . . 2115. Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2116. Disqualification of Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2217. Communication with Arbitrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2218. Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2319. Representation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2320. Stenographic Record. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2321. Interpreters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2322. Attendance at Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2423. Confidentiality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2424. Postponements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2425. Oaths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2426. Majority Decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2427. Dispositive Motions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2428. Order of Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2529. Arbitration in the Absence of a Party or Representative. . . . . . . . . . . . . . . . . . . . . . . 2630. Evidence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2631. Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2632. Interim Measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2733. Closing of Hearing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2734. Reopening of Hearing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2735. Waiver of Oral Hearing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2836. Waiver of Objection/Lack of Compliance with These Rules . . . . . . . . . . . . . . . . . . . . 2837. Extensions of Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2838. Serving of Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2839. The Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2840. Modification of Award. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2941. Release of Documents for Judicial Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2942. Applications to Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3043. Administrative Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3044. Neutral Arbitrator’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3045. Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3146. Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3147. Suspension for Non-Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3148. Interpretation and Application of Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Costs of Arbitration (including AAA Administrative Fees). . . . . . . . . . . . . . . . . . . . . . . . . 314RULES AND MEDIATION PROCEDURESAmerican Arbitration Association

For Disputes Arising Out of Employer Plans:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33(i) Filing Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33(ii) Hearing Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34(iii) Postponement/Cancellation Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34(iv) Hearing Room Rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35(v) Abeyance Fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35(vi) Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35For Disputes Arising Out of Individually-Negotiated Employment Agreementsand Contracts:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Administrative Fee Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Standard Fee Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Refunds—Standard Fee Schedule: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Flexible Fee Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Refunds—Flexible Fee Schedule: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Additional Fees Applicable to the Standard Fee and Flexible Fee Schedules. . . . . . . . 40Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41For Disputes Proceeding Under the Supplementary Rules for Class ActionArbitration (“Supplementary Rules”):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Optional Rules for Emergency Measures of Protection. . . . . . . . . . . . . . . . . . . . . . . . 42O-1. Applicability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42O-2. Appointment of Emergency Arbitrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42O-3. Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42O-4. Interim Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42O-5. Constitution of the Panel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43O-6. Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43O-7. Special Master. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43O-8. Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Rules Amended and Effective November 1, 2009. Fee Schedule Amended and Effective July 1, 2016.EMPLOYMENT RULES 5

Employment Mediation Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44M-1. Agreement of Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44M-2. Initiation of Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44M-3. Fixing of Locale (the city, county, state, territory and, if applicable, country ofthe mediation). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45M-4. Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45M-5. Appointment of the Mediator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45M-6. Mediator’s Impartiality and Duty to Disclose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46M-7. Vacancies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46M-8. Duties and Responsibilities of the Mediator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46M-9. Responsibilities of the Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47M-10. Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47M-11. Confidentiality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48M-12. No Stenographic Record. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48M-13. Termination of Mediation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48M-14. Exclusion of Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49M-15. Interpretation and Application of Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49M-16. Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49M-17. Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49M-18. Cost of the Mediation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496RULES AND MEDIATION PROCEDURESAmerican Arbitration Association

Employment Arbitration Rulesand Mediation ProceduresIntroductionFederal and state laws reflecting societal intolerance for certain workplaceconduct, as well as court decisions interpreting and applying those statutes, haveredefined responsible corporate practice and employee relations. Increasingly,employers and employees face workplace disputes involving alleged wrongfultermination, sexual harassment, or discrimination based on race, color, religion,sex, national origin, age and disability.As courts and administrative agencies become less accessible to civil litigants,employers and their employees now see alternative dispute resolution (“ADR”)as a way to promptly and effectively resolve workplace disputes. ADR proceduresare becoming more common in contracts of employment, personnel manuals,and employee handbooks.Increasingly, corporations and their employees look to the American ArbitrationAssociation as a resource in developing prompt and effective employmentprocedures for employment-related disputes.These Rules have been developed for employers and employees who wish to usea private alternative to resolve their disputes, enabling them to have complaintsheard by an impartial person with expertise in the employment field. Theseprocedures benefit both the employer and the individual employee by making itpossible to resolve disputes without extensive litigation.Role of the American Arbitration AssociationThe American Arbitration Association, founded in 1926, is a not-for-profit, publicservice organization dedicated to the resolution of disputes through mediation,arbitration, elections and other voluntary dispute resolution procedures. Millionsof workers are now covered by employment ADR plans administered by the AAA .Rules Amended and Effective November 1, 2009. Fee Schedule Amended and Effective July 1, 2016.EMPLOYMENT RULES 7

In addition, the AAA provides education and training, specialized publications,and research on all forms of dispute settlement. With 30 offices worldwideand cooperative agreements with arbitral institutions in 63 other nations, theAmerican Arbitration Association is the nation’s largest private provider ofADR services.For over 80 years, the American Arbitration Association has set the standards forthe development of fair and equitable dispute resolution procedures. Thedevelopment of the Employment Arbitration Rules and Mediation Proceduresand the reconstitution of a select and diverse roster of expert neutrals to hearand resolve disputes, are the most recent initiatives of the Association to provideprivate, efficient and cost-effective procedures for out-of-court settlement ofworkplace disputes.Legal Basis of Employment ADRSince 1990, Congress has twice re-affirmed the important role of ADR in the areaof employment discrimination—in the Americans with Disabilities Act in 1990,and a year later in Section 118 of the Civil Rights Act of 1991.The United States Supreme Court has also spoken on the importance of ADR inthe employment context. In Gilmer v. Interstate/Johnson Lane, 500 U.S. 20, 111S.Ct. 1647 (1991), the Supreme Court refused to invalidate Gilmer’s agreementwith the New York Stock Exchange that he wo

procedures benefit both the employer and the individual employee by making it possible to resolve disputes without extensive litigation. Role of the American Arbitration Association The American Arbitration Association, founded in 1926, is a not-for-profit, public service organization dedicated

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The comparative table sets out the measures in place at the following key institutions: American Arbitration Association / International Centre for Dispute Resolution (AAA/ICDR). Australian Centre for International Commercial Arbitration (ACICA). Asian International Arbitration Centre (AIAC).

2017 (H.R. 1374/S. 537), which would prohibit the enforcement of an arbitration agreement that requires arbitration for an employment, consumer, antitrust, or civil rights dispute if the agreement was executed prior to the dispute’s occurrence.

a paper animal. She tried over and over until she could finally fold a paper dog and wished that she could see Son just once more even though she knew that it was not possible. Looking at the paper dog she had made, she felt so weird that the paper dog seemed smiling at her. She felt that she would make more, many more animals out of paper. She collected all the papers in the house and started .