ARS earns about $1 billion in revenue annually and employs more than 6,000 people across the country. Like any legal manager at a company of this size, Fairey spends a lot of time thinking about risks. Mark Henriques, an attorney at Womble Bond Dickinson`s Charlotte office, finds that not all states allow arbitration clauses in employment contracts. California, for example, passed a law earlier this year banning such arbitration clauses, but the law is being challenged in court. The arbitration clause can determine whether the controversy is negotiated and decided by a single arbitrator or a three-member body. Unless there is a good chance that the problems that could arise from your contract are very complex or technical – for example, the creation, patenting, intellectual property and current confidentiality of high-tech intellectual property – you can choose a single arbitrator in the interest of time and cost control. “Going to equal Employment Opportunity Commission or taking legal action is always an option for employees, but having an agreement that sets out a very specific process has often been effective in resolving their concerns,” Fairey said. Rather, it may be the employer who wishes to establish derogations from a provision of the arbitral tribunal. These derogations most often apply to alleged infringements of restrictive agreements concerning confidentiality, non-publication of decency information, prohibition of debauchery and prohibitions of competition, which apply both during and after termination. The motivating factor behind these carve-outs is the fear of irreparable damage; Employers would prefer to seek expedited forbearance and/or damages in court. . .

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