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Employer ordered to pay arbitration costs

Our client’s former employer required him to sign a mandatory arbitration agreement. A provision in the agreement required the client to pay part of the costs of arbitration. Following a dispute about severance, our client filed a claim for arbitration. As expected, his former employer asked that the employee pay for half the costs of the proceeding.

Despite the provision in the arbitration agreement, we persuaded the American Arbitration Association that the agreement was contrary to law. It ordered the employer to pay the full costs of arbitration.

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