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May 16, 2019

New Research Finds Employees Win More Money and More Often in Arbitration Than Litigation

A new report from NDP Analytics found that employees who settled  an employment suit in arbitration were “three times more likely to win in arbitration than in court.”

The report, called “Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration,” also found that employees on average won twice the amount of money through arbitration than in court, and in a lower amount of time. The data was the result of an analysis of over 10,400 arbitration and over 90,700 federal court cases that terminated between 2014 and 2018. A new poll conducted by Public Opinion Strategies also found that more than six in 10 people have a favorable view of employment arbitration.

“This study shows hands down that employees fare much, much better in arbitration than they do in litigation,” said Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform said in a press release. “If Congress takes away the option for employees to use arbitration and forces them into filing lawsuits, the only winners will be trial lawyers looking to cash in on excessive litigation.”

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