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Many companies have started including arbitration clauses in their employment agreements. Arbitrating employment disputes can provide for more efficient and more economical resolutions. It can be less destructive of business relationships and allow the parties to decide their disputes privately. It also potentially reduces the time spent on discovery and appeals and eliminates the bias of local juries.
Yet, in-house attorneys often question whether to include arbitration clauses in their employment agreements because they do not want to limit their ability to obtain emergency relief in court if an employee misappropriates their confidential information or solicits and attempts to divert their clients after they resign.
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“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.