Mediation and Employment Law

Mediation is an alternative conflict resolution strategy which allows two disputing parties to negotiate a settlement with the assistance of a third-party negotiator called a mediator. The mediator does not offer legal advice. They also do not provide a binding resolution for the dispute. Their goal is simply to listen to both sides of an issue and resolve employment disputes without taking an employment case to court.

The benefit of mediation is that it can give each party the chance to focus on their interests and find a resolution. Keep in mind, however, unlike other types of dispute resolution strategies, the mediation settlement and its terms are entirely subject to the parties' agreement.

Why would employers or employees choose mediation?

With the increased cost of litigation, the possible damage to the reputation of a company, the possible erosion of company assets, and the potential for high legal fees, many companies have turned to mediation as one possible way to resolve an employment issue early and potentially eliminate the disruption and distraction of a legal battle.

Although the purpose of many laws has been to decrease discrimination or sexism in the workplace, one outcome has been an increase in conflict and employment litigation. Now, disputes can arise between an employers and employees for a variety of reasons including discrimination based on race, color, religion, sex, national origin, age or disability; wrongful termination; unfair promotions; or hostile work environment.

Mediation offers employers and employees a means to resolve conflicts for much less money than litigation. Mediation allows employees to share their story and feel like they have been heard. Both parties can also receive an immediate resolution. The mediation process is private and confidential, and settlement agreements are not shared with other employees.

When do I have to mediate?

Although mediation is sometimes voluntary, many employers have added clauses to their contracts to force employees, through sophisticated employment policies, to seek redress for their disputes first by filing an internal complaint, allowing the employer to investigate the issue, potentially having a peer review the issue, and participating in non-binding mediation. If at the end of all of these steps the parties cannot agree to a settlement, employees may be forced to seek legally binding arbitration.