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http://ssrn.com/abstract=389780
 
 

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Employment Arbitration and Litigation: An Empirical Comparison


Theodore Eisenberg


Cornell University - Law School

Elizabeth T. Hill


New York University School of Law

March 5, 2003

NYU Law School, Public Law Research Paper No. 65; Cornell Law School Working Paper

Abstract:     
Policy debate rages over mandatory employment arbitration. Using a unique database of American Arbitration Association employment dispute awards, this article compares court-tried employment cases and arbitrated employment claims. It compares adjudicated and arbitrated outcomes in the class of disputes most often the subject of arbitration, non-civil rights employment claims. For higher paid employees, we find little evidence that arbitrated outcomes materially differ from trial outcomes. Employee win rates in both forums exceed 55% and median awards in both forums exceed $65,000. We find no statistically significant differences between arbitration and litigation in employee win rates or in median or mean award levels. These results are consistent with the belief that lower pay employees lack systematic, realistic access to court. We also report evidence that arbitrated disputes conclude more quickly than litigated disputes.

Number of Pages in PDF File: 28

Keywords: arbitration, trials, litigation, juries

JEL Classification: J52, K12, K31, K41

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Date posted: May 26, 2003  

Suggested Citation

Eisenberg, Theodore and Hill, Elizabeth T., Employment Arbitration and Litigation: An Empirical Comparison (March 5, 2003). NYU Law School, Public Law Research Paper No. 65; Cornell Law School Working Paper. Available at SSRN: http://ssrn.com/abstract=389780 or http://dx.doi.org/10.2139/ssrn.389780

Contact Information

Theodore Eisenberg (Contact Author)
Cornell University - Law School ( email )
524 College Ave
Myron Taylor Hall
Ithaca, NY 14853
United States
607-255-6477 (Phone)
607-255-7193 (Fax)
Elizabeth T. Hill
New York University School of Law ( email )
40 Washington Square South
New York, NY 10012-1099
United States
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