excerpted from the American Arbitration Assn's Employment Dispute
Resolution Rules as Amended and Effective on November 1, 1993, all
rights reserved by the American Arbitration Assn.
These rules have been developed for employers and employees who wish to
use a private alternative to resolve their disputes. Many employers have
established such procedures internally, by incorporating them into
personnel manuals or employment provisions giving employees the
opportunity to have complaints heard by and impartial person with
expertise in the employment field. These internal procedures benefit
both the employer and the individual employee by making it possible to
resolve disputes without extensive litigation.
The American Arbitration Association (AAA) is a public-service, not-for-
profit organization offering a broad range of dispute-resolution
services through offices located in major cities throughout the United
States. In addition, through its headquarters in New York, the AAA
provides consulting services, education and training, specialized
publications, and research on all forms of dispute settlement.
EMPLOYMENT ARBITRATION RULES
Arbitration is submission of a dispute to one or more impartial persons
for a final and binding decision.
The parties can provide for arbitration in future disputes by inserting
the following clause into their employment contracts, personnel manuals
or policy statements, employment applications, or other agreement:
Standard Arbitration Clause
Any controversy or claim arising out of or relating to this
contract, or the breach thereof, shall be settled by arbitration
administered by the American Arbitration Association under its
Employment Dispute Resolution Rules, and judgment on the award rendered
by the arbitrator(s) may be entered in any court having jurisdiction
Arbitration of existing disputes may accomplished using the following:
Standard Submission to Arbitration
We the undersigned parties, hereby agree to submit to arbitration
administered by the American Arbitration Association under its
Employment Dispute Resolution Rules the following controversy: (cite
briefly). We further agree that the above controversy be submitted to
(one) (three) arbitrator(s). We further agree that we will faithfully
observe this agreement and the rules, that we will abide and perform any
award rendered by the arbitrator(s), and that judgment of the court
having jurisdiction may be entered on the award.
Mediation is a process in which the parties discuss their disputes with
an impartial person who assists them in reaching a settlement. The
mediator may suggest ways of resolving the dispute but may not impose a
settlement on the parties.
Mediation is completely voluntary, ensuring that the resulting
settlement will be acceptable to the parties. It offers the advantage of
informality, with reduced time and expense needed to resolve disputes.
In mediation, the neutral may meet the parties jointly or separately, in
what is called a caucus, in order to help them reach a settlement.
Parties may agree to use mediation on an informal basis for selected
disputes or mediation may be designated in a personnel manual as a step
prior to arbitration.
The AAA has developed a panel of mediators with experience in the
employment field and will assist the parties in appointing and
acceptable mediator and scheduling a meeting.
If the parties want to adopt mediation as a part of their contractual
dispute-settlement procedure, they can insert the following mediation
clause into their contract in conjunction with the standard arbitration
If a dispute arises out of or relates to this contract or the breach
thereof and if the dispute cannot be settled through direct discussions,
the parties agree to first endeavor to settle the dispute in an amicable
manner by mediation administered by the American Arbitration Association
under its Employment Mediation Rules before resorting to arbitration,
litigation, or some other dispute resolution procedure.
If the parties want to use a mediator to resolve an existing dispute,
they can enter into the following submission:
The parties hereby submit the following dispute to mediation
administered by the American Arbitration Association under its
Employment Mediation Rules. (the clause can also provide for the
qualifications of the mediator(s), method of payment, locale of
meetings, and any other item of concern to the parties).
TYPES OF DISPUTES COVERED
The dispute resolution procedures contained in this booklet can be
inserted into an employee personnel manual, an employment application or
an individual employment agreement, or can be used in a specific
dispute. They do not apply to disputes arising under collective-
The AAA's Department of Education & Training has developed programs
focusing on resolving employment disputes, and its staff is available to
tailor such programs for specific needs.
EMPLOYMENT MEDIATION RULES
1. Agreement of Parties
Whenever, by provision in an employment dispute resolution, or by
separate submission, the parties have provided for mediation or
conciliation of existing or future disputes under the auspices of the
American Arbitration Association (AAA) or under these rules, they shall
be deemed to have made these rules, as amended and in effect as of the
date of the submission of the dispute, a part of their agreement.
2. Initiation of Mediation
Any party to an employment dispute may initiate mediation by filing with
the AAA a submission to mediation or a written request for mediation
pursuant to these rules, together with the appropriate administrative
3. Request for Mediation
A request for mediation shall contain a brief statement of the nature of
the dispute and the names, addresses, and telephone numbers of all
parties to the dispute and those who will represent them, if any, in the
mediation. The initiating party shall simultaneously file two copies of
the request with the AAA and one copy with every other party to the
4. Appointment of the Mediator
Upon receipt of a request for mediation, the AAA will appoint a
qualified mediator to serve. Normally, a single mediator will be
appointed unless the parties agree otherwise or the AAA determines
otherwise. If the agreement of the parties names a mediator or specifies
a method of appointing a mediator, that designation or method shall be
5. Qualifications of the Mediator
No person shall serve as a mediator in any dispute in which that person
has any financial or personal interest in the result of the mediation,
except by the written consent of all parties. Prior to accepting an
appointment, the prospective mediator shall disclose any circumstance
likely to create a presumption of bias or prevent a prompt meeting with
the parties. Upon receipt of such information, the AAA shall either
replace the mediator or immediately communicate the information to the
parties for their comments. In the event that the parties disagree as to
whether the mediator shall serve, the AAA will appoint another mediator.
The AAA is authorized to appoint another mediator if the appointed
mediator is unable to serve promptly.
If any mediator shall become unwilling or unable to serve, the AAA will
appoint another mediator, unless the parties agree otherwise.
Any party may be represented by persons of the party's choice. The names
and addresses of such persons shall be communicated in writing to all
parties and to the AAA.
8. Date, Time, and Place of Mediation
The mediator shall fix the date and the time of each mediation session.
The mediation shall be held at the appropriate regional office of the
AAA, or at any other convenient location agreeable to the mediator and
the parties, as the mediator shall determine.
9. Identification of Matters in Dispute
At least 10 days prior to the first scheduled mediation session, each
party shall provide the mediator with a brief memorandum setting forth
its position with regard to the issues that need to be resolved. At the
discretion of the mediator, such memoranda may be mutually exchanged by
At the first session, the parties will be expected to produce all
information reasonably required for the mediator to understand the
The mediator may require any party to supplement such information.
10. Authority of the Mediator
The mediator does not have the authority to impose a settlement on the
parties but will attempt to help them reach a satisfactory resolution of
their dispute. The mediator is authorized to conduct joint and separate
meetings with the parties and to make oral and written recommendations
for settlement. Whenever necessary, the mediator may also obtain expert
advice concerning technical aspects of the dispute, provided that the
parties agree and assume the expenses of obtaining such advice.
Arrangements for obtaining such advice shall be made by the mediator or
the parties, as the mediator shall determine.
The mediator is authorized to end the mediation whenever, in the
judgment of the mediator, further efforts at mediation would not
contribute to a resolution of the dispute between the parties.
Mediation sessions are private. The parties and their representatives
may attend mediation sessions. Other persons may attend only with the
permission of the parties and with the consent of the mediator.
Confidential information disclosed to a mediator by the parties or by
witnesses in the course of the mediation shall not be divulged by the
mediator. All records, reports, or other documents received by a
mediator while serving in that capacity shall be confidential. The
mediator shall not be compelled to divulge such records or to testify in
regard to the mediation in any adversary proceeding or judicial forum.
The parties shall maintain the confidentiality of the mediation and
shall not rely on, or introduce as evidence in any arbitral, judicial,
or other proceeding
(a) views expressed or suggestions made by another party with
respect to a possible settlement of the dispute;
(b) admissions made by another party in the course of the mediation
(c) proposals made or views expressed by the mediator; or
(d) the fact that another party had or had not indicated willingness
to accept a proposal for settlement made by the mediator.
13. No Stenographic Record
There shall be no stenographic record of the mediation process.
14. Termination of Mediation
The mediation shall be terminated
(a) by the execution of a settlement agreement by the parties;
(b) by a written declaration of the mediator to the effect that
further efforts at mediation are no longer worthwhile; or
(c) by a written declaration of a party or parties to the effect
that the mediation proceedings are terminated.
15. Exclusion of Liability
Neither the AAA nor any mediator is a necessary party in judicial
proceedings relating to the mediation.
Neither the AAA nor any mediator shall be liable to any party for any
act or omission in connection with any mediation conducted under these
16. Interpretation and Application of Rules
The mediator shall interpret and apply these rules insofar as they
relate to the mediator's duties and responsibilities. All other rules
shall be interpreted and applied by the AAA.
The expenses of witnesses for either side shall be paid by the party
producing such witnesses. All other expenses of the mediation,
including required traveling and other expenses of the mediator and
representatives of the AAA, and the expenses of any witness and the cost
of any proofs or expert advice produced at the direct request of the
mediator, shall be borne equally by the parties unless they agree
The mediation filing fee is $300. This fee is to be borne equally or as
otherwise agreed by the parties.
Additionally, the parties are charged a fee based on the number of hours
of mediator time. The hourly fee is for the compensation of both the
mediator and the AAA and varies according to region. Check with your
local office for specific availability and rates.
The expenses of the AAA and the mediator, if any, are generally borne
equally by the parties. The parties may vary this arrangement by
Where the parties have attempted mediation under these rules but have
failed to reach a settlement, the AAA will apply the administrative fee
on the mediation toward subsequent AAA arbitration, which is filed with
the AAA within 90 days of the termination of the mediation.
Before the commencement of mediation, the parties shall each deposit
such portion of the fee covering the cost of mediation as the AAA shall
direct and all appropriate additional sums that the AAA deems necessary
to defray the expenses of the proceeding. When the mediation has
terminated, the AAA shall render an accounting and return any unexpended
balance to the parties.
Once the parties agree to mediate, no refund of the administrative fee
will be made.
EMPLOYMENT DISPUTE RESOLUTION RULES
1. Agreement of Parties
The parties shall be deemed to have made these rules a part of their
arbitration agreement whenever they have provided for arbitration by the
American Arbitration Association (hereinafter AAA) under its Employment
Dispute Resolution Rules. These rules and any amendment of them shall
apply in the form obtaining at the time the demand for arbitration or
submission agreement is received by the AAA. The parties, by written
agreement, may vary the procedures set forth in these rules.
2. Administration and Delegation of Duties
When parties agree to arbitrate under these rules, or when they provide
for arbitration by the AAA and arbitration is initiated under these
rules, they thereby authorize the AAA to administer the arbitration. The
authority and duties of the AAA are prescribed in the agreement of the
parties and these rules, and may be carried out through such of the
AAA's representatives as it may direct.
3. Initiation of an Arbitration
Cases may be initiated by joint submission in writing or in accordance
with provisions in a personnel manual or employment agreement, and filed
together with the appropriate filing fee as provided in the schedule on
Arbitration under an arbitration provision in a contract shall be
initiated in the following manner:
(a) The initiating party (hereinafter claimant) shall, within the time
period, if any, specified in the contract(s), give written notice to the
other party (hereinafter respondent) of its intention to arbitrate
(demand), which notice shall contain a statement setting forth the
nature of the dispute, the amount involved, if any, the remedy sought,
and the hearing locale requested, and;
(b) shall file at any regional office of the AAA three copies of the
notice and three copies of the arbitration provisions of the contract,
together with the appropriate filing fee as provided in the schedule on
The AAA shall give notice of such filing to the respondent or
respondents. A respondent may file an answering statement in duplicate
with the AAA within 10 days after notice from the AAA, in which
event the respondent shall at the same time send a copy of the answering
statement to the claimant. If a counterclaim is asserted, it shall
contain a statement setting forth the nature of the counterclaim, the
amount involved, if any, and the remedy sought. If a counterclaim is
made, the appropriate fee provided in the schedule on page 22 shall be
forwarded to the AAA with the answering statement. If no answering
statement is filed within the stated time, it will be treated as a
denial of the claim. Failure to file an answering statement shall not
operate to delay the arbitration.
4. Changes of Claim
After filing of a claim, if either party desires to make any new or
different claim or counterclaim, it shall be made in writing and filed
with the AAA, and a copy shall be mailed to the other party, who shall
have a period of 10 days from the date of such mailing within which to
file an answer with the AAA. After the arbitrator is appointed,
however, no new or different claim may submitted except with the
5. Applicable Procedures
Unless the AAA in its discretion determines otherwise, the Expedited
Procedures shall be applied to any case where no disclosed claim or
counterclaim exceeds $50,000, exclusive of interest and arbitration
costs. Parties may also agree to using the Expedited Procedures in cases
involving claims in excess $50,000. The Expedited Procedures shall be
applied as described in Sections E1 through E5 of these rules, in
addition to any other portion of these rules that do not conflict with
the Expedited Procedures.
6. Administrative Conference, Preliminary Hearing, and Mediation
At the request of any party or at the discretion of the AAA, an
administrative conference with the AAA and the parties and/or their
representatives will be scheduled in appropriate cases to expedite the
arbitration proceedings. There is no administrative fee for this
In large or complex cases, at the request of any party or at the
discretion of the arbitrator or the AAA, a preliminary hearing with the
parties and/or their representatives and the arbitrator may be scheduled
by the arbitrator to specify the issues to be resolved, to stipulate to
uncontested facts, and to consider any other matters that will expedite
the arbitration proceedings. Consistent with the expedited nature of
arbitration, the arbitrator may, at the preliminary hearing, establish
(i) the extent of and schedule for the production relevant documents
and other information, (ii) the identification of any witnesses to be
called, and (iii) a schedule for further hearings to resolve the
dispute. There is no administrative fee for the first preliminary
With the consent of the parties, the AAA at any stage of the proceeding
may arrange a mediation conference under the Commercial Mediation Rules,
in order to facilitate settlement. The mediator shall not be an
arbitrator appointed to the case. Where the parties to a pending
arbitration agree to mediate under the AAA's rules, no additional
administrative fee is required initiate the mediation.
7. Fixing a Locale
The parties may mutually agree on the locale where the arbitration is to
be held. If any party requests that the hearing be held in a specific
locale and the other party files no objection thereto within 10 days
after notice of the request has been sent to it by the AAA, the locale
shall be the one requested. If a party objects to the locale requested
by the other party, the AAA shall have the power to determine the locale
and its decision shall be final and binding.
8. Qualifications of Neutral Arbitrators
Arbitrators serving under these rules shall have familiarity with the
(b) Any neutral arbitrator appointed pursuant to Section 9 or E2 shall
be subject to disqualification for the reasons specified in paragraph
(c) of this section . If the parties specifically so agree in writing,
the arbitrator shall not be subject to disqualification for those
No person shall serve as a neutral arbitrator in any matter in which
that person has any financial or personal interest in the result of the
proceeding. Prior to accepting appointment, the prospective arbitrator
shall disclose any circumstance likely to prevent a prompt hearing or to
create a presumption of bias. Upon receipt of such information, the AAA
will either replace that person or communicate the information to the
parties for comment. Thereafter, the AAA may disqualify that person and
its decision shall be conclusive.
(d) The term "arbitrator" in these rules refers to the arbitration
panel, whether composed of one or more arbitrators.
9. Number and Appointment of Neutral Arbitrators
If the arbitration agreement does not specify the number of arbitrators,
the dispute shall be heard and determined by one arbitrator, unless the
AAA, in its discretion, directs that a greater number of arbitrators be
If the parties have not appointed an arbitrator and have not provided
any other method of appointment, the arbitrator shall be appointed in
the following manner: immediately after the filing of the demand or
submission, the AAA shall send simultaneously to each party to the
dispute an identical list of names of persons chosen from the panel.
Each party to the dispute shall have 10 days from the transmittal date
in which to strike names objected to, number the remaining names in
order of preference, and return the list to the AAA. In a single-
arbitrator case, each party may strike three names on a peremptory
basis. In a multiarbitrator case, each party may strike five names on a
peremptory basis. If a party does not return the list within the time
specified, all persons named therein shall be deemed acceptable. From
among the persons who have been approved on both lists, and in
accordance with the designated order of mutual preference, the AAA shall
invite the acceptance of an arbitrator to serve. If the parties fail to
agree on any of the persons named, or if acceptable arbitrators are
unable to act, or if for any other reason the appointment cannot be
made from the submitted lists, the AAA shall have the power to make the
appointment from among other members of the panel without the submission
of additional lists.
If for any reason an arbitrator is unable to perform the duties of the
office, the AAA may, on proof satisfactory to it, declare the office
vacant. Vacancies shall be filled in accordance with the applicable
provisions in these rules.
In the event of a vacancy in a panel of neutral arbitrators after the
hearings have commenced, the remaining arbitrator or arbitrators may
continue with the hearing and determination of the controversy, unless
the parties agree otherwise.
11. Date, Time, and Place of Hearing
The arbitrator shall set the date, time, and place for each hearing. The
AAA shall send a notice of hearing to the parties at least 10 days in
advance of the hearing date, unless otherwise agreed by the parties.
Any party may be represented by counsel or other authorized
representative. A party intending to be represented shall notify the
other party and the AAA of the name and address of the representative at
least three days prior to the date set for the hearing in which that
person is first to appear. When such a representative initiates
arbitration or responds for a party, notice is deemed to have been
13. Attendance at Hearings
The arbitrator shall maintain the privacy of the hearings unless the law
provides to the contrary. Any person having a direct interest in the
arbitration is entitled to attend hearings. The arbitrator shall
otherwise have the power to require the exclusion of any witness, other
than a party or other essential person, during the testimony of any
other witness. It shall be discretionary with the arbitrator to
determine the propriety of the attendance of any other person.
The arbitrator for good cause shown may postpone any hearing upon the
request of a party or upon the arbitrator's own initiative, and shall
also grant such postponement when all of the parties agree.
Before proceeding with the first hearing, each arbitrator may take an
oath of office and, if required by law, shall do so. The arbitrator may
require witnesses to testify under oath administered by any duly
qualified person and, if it is required by law or requested by any
party, shall do so.
16. Majority Decision
All decisions of the arbitrators must be by a majority. The award must
also be made by a majority unless the concurrence of all is expressly
required in the arbitration agreement or by law.
17. Order of Proceedings and Communication with Arbitrators
A hearing shall be opened by the filing of the oath of the arbitrator,
where required; by the recording of the date, time, and place of the
hearing, and the presence of the arbitrator, the parties, and their
representatives, if any; and by the receipt by the arbitrator of the
statement of the claim and the answering statement, if any.
The arbitrator may, at the beginning of the hearing, ask for statements
clarifying the issues involved. In some cases, part or all of the above
will have been accomplished at the preliminary hearing conducted by the
arbitrator pursuant to Section 6.
The complaining party shall then present evidence to support its claim.
The defending party shall then present evidence supporting its defense.
Witnesses for each party shall submit to questions or other examination.
The arbitrator has the discretion to vary this procedure but shall
afford a full and equal opportunity to all parties for the presentation
of any material and relevant evidence.
Exhibits, when offered by either party, may be received as evidence by
The names and addresses of all witnesses and a description of the
exhibits in the order received shall be made a part of the record.
There shall be no direct communication between the parties and a
neutral arbitrator other than at oral hearing, unless the parties and
the arbitrator agree otherwise. Any other oral or written communication
from the parties to the neutral arbitrator shall be directed to the AAA
for transmittal to the arbitrator.
18. Arbitration in the Absence of a Party or Representative
Unless the law provides to the contrary, the arbitration may proceed in
the absence of any party or representative who, after due notice, fails
to be present or fails to obtain a postponement. An award shall not be
made solely on the default of a party. The arbitrator shall require the
party who is present to submit such evidence as the arbitrator may
require for the making of an award.
The parties may offer such evidence as is relevant and material to the
dispute and shall produce such evidence as the arbitrator may deem
necessary to an understanding and determination of the dispute. An
arbitrator or other person authorized by law to subpoena witnesses or
documents may do so upon the request of any party or independently.
The arbitrator shall be the judge of the relevance and materiality of
the evidence offered, and conformity to legal rules of evidence shall
not be necessary. All evidence shall be taken in the presence of all of
the arbitrators and all of the parties, except where any of the parties
is absent in default or has waived the right to be present.
20. Evidence by Affidavit and Posthearing Filing of Documents or Other
The arbitrator may receive and consider the evidence of witnesses by
affidavit, but shall give it only such weight as the arbitrator deems it
entitled to after consideration of any objection made to its admission.
If the parties agree or the arbitrator directs that documents or other
evidence be submitted to the arbitrator after the hearing, the documents
or other evidence shall be filed with the AAA for transmission to the
arbitrator. All parties shall be afforded an opportunity to examine such
documents or other evidence.
21. Inspection or Investigation
An arbitrator finding it necessary to make an inspection or
investigation in connection with the arbitration shall direct the AAA to
so advise the parties. The arbitrator shall set the date and time and
the AAA shall notify the parties. Any party who so desires may be
present at such an inspection or investigation. In the event that one or
all parties are not present at the inspection or investigation, the
arbitrator shall make a verbal or written report to the parties and
afford them an opportunity to comment.
22. Interim Measures
The arbitrator may issue such orders for interim relief as may be deemed
necessary to safeguard the the subject matter of the arbitration,
without prejudice to the rights of the parties or to the final
determination of the dispute.
23. Closing of Hearing
The arbitrator shall specifically inquire of all parties whether they
have any further proofs to offer or witnesses to be heard. Upon
receiving negative replies or if satisfied that the record is complete,
the arbitrator shall declare the hearing closed.
If briefs are to be filed, the hearing shall be declared closed as of
the final date set by the arbitrator for the receipt of briefs. If
documents are to be filed as provided in Section 20 and the date set for
their receipt is later than that set for the receipt of briefs, the
later date shall be the date of closing of the hearing. The time limit
within which the arbitrator is required to make the award shall commence
to run, in the absence of other agreements by the parties, upon the
closing of the hearing.
24. Reopening of Hearing
The hearing may be reopened on the arbitrator's initiative, or upon
application of a party, at any time before the award is made. If
reopening the hearing would prevent the making of the award within the
specific time agreed on by the parties in the contract(s) out of which
the controversy has arisen, the matter may not be reopened unless the
parties agree on an extension of time. When no specific date is fixed in
the contract, the arbitrator may reopen the hearing and shall have 30
days from the closing of the reopened hearing within which to make an
25. Waiver of Oral Hearing
The parties may provide, by written agreement, for the waiver of oral
hearings in any case. If the parties are unable to agree as to the
procedure, the AAA shall specify a fair and equitable procedure.
26. Waiver of Rules
Any party who proceeds with the arbitration after knowledge that any
provision or requirement of these rules has not been complied with and
who fails to state an objection in writing shall be deemed to have
waived the right to object.
27. Extensions of Time
The parties may modify any period of time by mutual agreement. The AAA
or the arbitrator may for good cause extend any period of time
established by these rules, except the time for making the award. The
AAA shall notify the parties of any extension.
28. Serving of Notice
Each party shall be deemed to have consented that any papers, notices,
or process necessary or proper for the initiation or continuation of an
arbitration under these rules; for any court action in connection
therewith; for the entry of judgment on any award made under these
rules may be served on a party by mail addressed to the party or its
representative at the last known address or by personal service, in or
outside the state where the arbitration is to be held, provided that
reasonable opportunity to be heard with regard thereto has been granted
to the party.
The AAA and the parties may also use facsimile transmission, telex,
telegram, or other written forms of electronic communication to give the
notices required by these rules.
29. The Award
(a) The award shall be made promptly by the arbitrator and, unless
otherwise agreed by the parties or specified by law, no later than 30
days from the date of closing the hearing, or, if oral hearings have
been waived, from the date of the AAA's transmittal of the final
statements and proofs to the arbitrator.
(b) The award shall be in writing and shall be signed by a majority
of the arbitrators. Unless the parties agree otherwise any opinion shall
be in summary form. It shall be executed in the manner required by law.
(c) The arbitrator may grant any remedy or relief that the
arbitrator deems just and equitable and within the scope of the
agreement of the parties, including, but not limited to, specific
performance of a contract. The arbitrator shall, in the award, assess
arbitration fees, expenses, and compensation as provided in Sections 32,
33 and 34 in favor of any party and, in the event that any
administrative fees or expenses are due the AAA, in favor of the AAA.
(d) If the parties settle their dispute during the course of the
arbitration, the arbitrator may set forth the terms of the agreed
settlement in an award. Such an award is referred to as a consent award.
(e) Parties shall accept as legal delivery of the award the placing
of the award or a true copy thereof in the mail addressed to a party or
its representative at the last known address, personal service of the
award, or the filing of the award by any other manner that is permitted
30. Release of Documents for Judicial Proceedings
The AAA shall, upon the written request of a party, furnish the party,
at its expense, certified copies of any papers in the AAA's possession
that may be required in judicial proceedings relating to the
31. Judicial Proceedings and Exclusion of Liability
(a) No judicial proceeding by a party relating to the subject matter
of the arbitration shall be deemed a waiver of the party's right to
(b) Neither the AAA nor any arbitrator in a proceeding under these
rules is a necessary party in judicial proceedings relating to the
(c) Parties to these rules shall be deemed to have consented that
judgment upon the arbitration award may be entered in any federal or
state court having jurisdiction thereof.
(d) Neither the AAA nor any arbitrator shall be liable to any party
for any act or omission in connection with any arbitration conducted
under these procedures.
32. Administrative Fees
As a not-for-profit organization, the AAA shall prescribe filing and
other administrative fees and service charges to compensate it for the
cost of providing administrative services. The fees in effect when the
fee or charge is incurred shall be applicable.
The filing fee shall be advanced by the initiating party or parties,
subject final apportionment by the arbitrator in the award.
The AAA may, in the event of extreme hardship on the part of any party,
defer or reduce the administrative fees.
Unless otherwise agreed by the parties, the expenses of witnesses for
either side shall be paid by the party producing such witnesses. All
other expenses of the arbitration, including required travel and other
expenses of the arbitrator, AAA representatives, and any witness and the
cost of any proof produced at the direct request of the arbitrator,
shall be borne equally by the parties, unless they agree otherwise or
unless the arbitrator directs otherwise in the award.
34. Neutral Arbitrator's Compensation
An appropriate daily rate and other arrangements will be discussed by
the administrator with the parties and the arbitrator. If the parties
fail to agree to the terms of compensation, an appropriate rate shall be
established by the AAA and communicated in writing to the parties.
Any arrangement for the compensation of a neutral arbitrator shall be
made through the AAA and not directly between the parties and the
The AAA may require the parties to deposit in advance of any hearings
such sums of money as it deems necessary to cover the expense of the
arbitration, including the arbitrator's fee, if any, and shall render an
accounting to the parties and return any unexpended balance at the
conclusion of the case.
36. Interpretation and Application of Rules
The arbitrator shall interpret and apply these rules insofar as they
relate to the arbitrator's powers and duties. When there is more than
one arbitrator and a difference arises among them concerning the meaning
or application of these rules, it shall be decided by a majority vote.
If that is not possible, either an arbitrator or a party may refer the
question to the AAA for a final decision. All other rules shall be
interpreted and applied by the AAA.
E1. Notice by Telephone
The parties shall accept all notices from the AAA by telephone. Such
notices by the AAA shall subsequently be confirmed in writing to the
parties. Should there be a failure to confirm in writing any notice
hereunder, the proceeding shall nonetheless be valid if notice has, in
fact, been given by telephone.
E2. Appointment and Qualifications of Arbitrator
The AAA shall submit simultaneously to each party and identical list of
five proposed arbitrators, drawn from the Panel of Arbitrators, who have
familiarity with the employment field, from which one arbitrator shall
be appointed to hear and determine the case promptly.
Each party may strike two names from the list on a peremptory basis. The
list is returnable to the AAA within seven days from the date of the
AAA's mailing to the parties.
If for any reason the appointment of an arbitrator cannot be made from
the list, the AAA may make the appointment from among other members of
the panel without submitting additional lists.
The parties will be given notice by telephone by the AAA of the
appointment of the arbitrator, who shall be subject to disqualification
for the reasons specified in Section 8(c). Within seven days the parties
shall notify the AAA, by telephone, of any objection to the arbitrator
appointed. Any objection by a party to the arbitrator shall be confirmed
in writing to the AAA with a copy to the other party.
E3. Date, Time, and Place of Hearing
The arbitrator shall set the date, time, and place of the hearing. The
AAA will notify the parties by telephone, at least seven days in advance
of the hearing date. A formal notice of hearing will also be sent by the
AAA to the parties.
E4. The Hearing
Generally, the hearing shall be completed within one day, unless the
dispute is resolved by submission of documents upon agreement of the
parties. The arbitrator, for good cause shown, may schedule an
additional hearing to be held within seven days.
E5. Time of Award
Unless otherwise agreed by the parties, the award shall be rendered not
later than fourteen days from the date of the closing of the hearing.
The AAA's administrative charges are based on filing and service fees.
Arbitrator compensation, if any, is not included in this schedule.
Unless the parties agree otherwise, arbitrator compensation and
administrative fees are subject to allocation by the arbitrator in the
A non-refundable filing fee is payable in full by a filing party when a
claim, counterclaim or additional claim is filed, as provided below.
Amount of Claim .......................Filing Fee
Up to $10,000.............................$500
Above $10,000 to $50,000..................$750
Above $50,000 to $250,000...............$1,500
Above $250,000 to $500,000..............$3,000
Above $500,000 to $1,000,000............$4,000
Above $1 million........................$5,000
When no amount can be stated at the time of filing, the minimum filing
fee is $1,500, subject to increase when the claim or counterclaim is
When a claim or counterclaim is not for a monetary amount, an
appropriate filing fee will be determined by the AAA.
The minimum filing fee for any case having three or more arbitrators is
For each day of hearing held before a single arbitrator, an
administrative fee of $150 is payable by each party.
For each day of hearing held before a multiarbitrator panel, an
administrative fee of $200 is payable by each party.
There is no hearing fee for the initial hearing in cases administered
under the Expedited Procedures.
A fee of $150 is payable by a party causing a postponement of any
hearing scheduled before a single arbitrator.
A fee of $200 is payable by a party causing a postponement of any
hearing scheduled before a multiarbitrator panel.
On single-arbitrator cases, a processing fee of $150 per party is
payable 180 days after the case is initiated, and every 90 days
thereafter, until the case is withdrawn or settled or the hearings are
closed by the arbitrator.
On multiarbitrator cases, a processing fee of $200 per party is payable
180 days after the case is initiated, and every 90 days thereafter,
until the case is withdrawn or settled or the hearings are closed by the
Suspension for Nonpayment
If arbitrator compensation or administrative charges have not been paid
in full, the AAA may so inform the parties in order that one of them may
advance the required payment. If such payments are not made, the
arbitrator may order the suspension or termination of the proceedings.
If no arbitrator has yet been appointed, the AAA may suspend the
Hearing Room Rental
The Hearing Fees described above do not cover the rental of hearing
rooms, which are available on a rental basis. Check with your local
office for availability and rates.
This file was prepared from material copyrighted by, and is
posted with the permission of, the American Arbitration Association.
For more info and any updates or changes visit the AAA's web site at
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