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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 former federal judges with relevant expertise to act as arbitrators per region (regions TBD) to deal with cases within 30 days of submission of 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% administrative fees (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).

Key assumptions:

  1. Expedited arbitration rules (limited briefing, limited discovery, no post hearing briefs)
  2. Major issues common to all cases dealt with in an MDL like court composed of a three judge tribunal)

MDL Framework:

  • 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