Skip to main content

arbitration-orgs

JAMS vs. AAA: Which is Better for Your Employees?​

When deciding between JAMS (Judicial Arbitration and Mediation Services) and AAA (American Arbitration Association), it's important to consider their rules, costs, and overall approach to employment disputes. The choice can significantly impact the fairness, efficiency, and cost of the process for both you and your employees.

American Arbitration Association (AAA)​

What Is The American Arbitration Association (AAA)? - Consumer Laws For You

  • Pros:

    • Extensive Experience: AAA is one of the oldest and largest dispute resolution providers in the world, with a long history of handling employment cases. This means a vast network of experienced arbitrators.

    • Fee Structure: For employment cases, AAA has specific rules that ensure the process is not prohibitively expensive for the employee. The employer is typically required to cover the bulk of the administrative and arbitrator fees.

    • Fairness Protocols: AAA has a long-standing set of "Due Process Protocols" that aim to ensure fairness for employees. These protocols address issues like the right to counsel, discovery, and a neutral arbitrator.

    • Mass Arbitration Rules: AAA recently implemented new rules to handle "mass arbitrations" (25 or more claimants), which can be an important consideration if you anticipate a large-scale dispute. These rules are designed to streamline the process.

  • Cons:

    • Procedural formality: While designed to be more streamlined than litigation, the AAA process can still be quite formal, with detailed rules that might feel a bit rigid.

    • Potential for Delay: The two-step process in mass arbitrations (initial mediation followed by arbitration) could potentially add some time to the overall resolution, especially in large-scale disputes.

Judicial Arbitration and Mediation Services (JAMS)​

  • Pros:

    • Reputation for Neutrality: JAMS has a very strong reputation for arbitrator quality, often drawing from a pool of retired judges and highly regarded legal experts. This can be a significant advantage in complex disputes.

    • Flexibility: JAMS is known for being more flexible and adaptable with its procedures, allowing the parties to work with the arbitrator to tailor the process to the specific needs of the dispute. This can be beneficial in a modern, agile business setting.

    • Focus on Early Resolution: Similar to AAA, JAMS also encourages mediation and other forms of early resolution. Their "minimum standards" for employment arbitration also require all remedies available in court, as well as a neutral arbitrator and the right to counsel.

  • Cons:

    • Higher Costs: JAMS is sometimes perceived as being more expensive than the AAA, particularly for smaller disputes. Their fee structure can vary, so it is important to review their fee schedule carefully.

    • Less Detailed Rules: While flexibility is a pro, some might see the less prescriptive nature of JAMS's rules as a con, as it leaves more to the discretion of the individual arbitrator.

Which is a Better Fit for Your Web Development Agency?​

Given that you are a small business owner in the tech space, both JAMS and AAA are excellent options. The choice often comes down to your personal preference and the nature of your future disputes.

  • For Predictability and Established Rules: If you value having a very clear, established set of rules and a well-defined process, AAA might be a slightly better fit. Their extensive history and detailed protocols provide a sense of security and predictability.

  • For Flexibility and High-Profile Arbitrators: If you prioritize a more flexible process that can be customized to the specifics of a dispute, and if you are willing to potentially pay a bit more for a highly-regarded arbitrator, then JAMS could be a strong choice. This might be particularly appealing for a business like yours that deals with creative and technical work where the nuances of a dispute may require a more tailored approach.

Ultimately, both are reputable organizations that adhere to high standards of fairness. The most important thing is to clearly state in your employment agreements which organization's rules will govern any dispute.