Effective August 10, 2020
Framework for Series of Mass Employment Arbitration Proceedings
Establish a framework for dealing with individual employment claims that are subject to a common arbitration clause. This framework is ideal for companies that use a standard arbitration clause as a condition of employment or as a condition of a relationship established through a web-based interface. It provides individual arbitrations at a fixed price and establishes a panel to deal with issues common to all claims to establish efficiency and consistency.
Framework for Individual Employment Arbitrations
Filing fee: $100 initial filing fee
Arbitrators: FedArb will work with the parties to create a roster of 5 panelist consisting of former federal judges and neutrals with relevant expertise to act as arbitrators per region (regions TBD) to deal with cases within 30 days of submission of a filing. Two-step process: FedArb proposes 10 names, then parties can strike 3. Step 2 is force ranking those who remain with the top five being the panel.
- Hourly fees agreed upon (would agree to a range of $700-$900/hr or alternatively, FedArb could get the judges to agree on one set hourly rate). FedArb would randomly assign judges for each new case.
- Create fixed price costs (min/max) depending on the type of arbitrations.
- For each judge, the first five cases would be billed at the actual number of hours, subject to the agreed upon minimum and maximum. After a judge has done five cases, the fee will be set to the appropriate level.
Administrative Fee: 6% of fees billed by arbitrators (half of FedArb’s normal 12%)
Setup fees: 60 days prior to the hearing, a non-refundable setup fee of $1,000 will be charged. 30 days prior to hearing date, a non-refundable prepayment of all remaining fees (arbitrator’s fixed fee and administrative fee).
- Expedited arbitration rules (limited briefing, limited discovery, no post hearing briefs).
- FedArb can also administer procedure by CPR, JAMS, AAA or other similar entities, while still using FedArb’s fee structure.
- Major issues common to all cases dealt with in an MDL like court composed of a three judge tribunal (optional).
- To the extent the Mass Employment Arbitration rules conflict with FedArb‘s general arbitration rules, the Mass Employment Arbitration rules supersede and govern with respect to the timing and amount of fees.
- Video may be used in situations where there is no local panelists or where health concerns otherwise dictate.
- A setup fee (based on the number of arbitration) for nationwide MDL type proceeding
- Creation of a 1 or 3 judge tribunal with former federal judges with relevant expertise to bill at their normal rate
- 6% administrative fee