Without seeing the actual agreement, it is impossible to give you specific advice. However, this type of agreement ordinarily means that you are agreeing that any disputes concerning your employment would have to be resolved by a mediator or arbitrator rather than a lawsuit. You would give up the right to go to court or have a trial with a judge or jury over most matters concerning your employment . These are substantial rights, which have served many of my clients well over the years, and I would certainly not want to give them up given the choice. (In fact, one could argue that they are included in the U.S. Constitution. Amendment 7: "In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved. . ." Unfortunately, courts have recently held that arbitration agreements are nevertheless usually enforceable.) However, despite their apparent inequity, it is very often the case that employers insist on these agreements as a requirement for continued employment, and unless you have other options for employment or unusual bargaining power as a key employee you may find that the employer is not willing to be very flexible on this. In any case, it is unlikely that your particular agreement would waive your right to claim unemployment (or workers' compensation) should you otherwise qualify.
Answered on Jun 30th, 2011 at 11:19 AM