The American Arbitration Association (AAA) updated its Employment/Workplace Arbitration Rules effective May 1, 2025, significantly altering arbitration proceedings. These revisions expand coverage beyond traditional employees to include independent contractors, allowing for the arbitration of disputes under independent contractor agreements. They also enhance arbitrator authority, enabling the issuance of subpoenas, controlling depositions, and enforcing compliance through sanctions. The changes reflect the AAA's commitment to fairness, transparency, and efficiency, incorporating extensive stakeholder feedback to improve the arbitration process.
Under the updated Employment/Workplace Arbitration Rules, the AAA expands coverage to independent contractors, allowing businesses to include consultants and freelancers in arbitration.
The AAA's President and CEO, Bridget McCormack, stated that these updates reflect an ongoing commitment to fairness, transparency, and maintaining high ADR standards.
With the new rules, arbitrators gain substantial authority, enabling them to issue subpoenas, manage witness testimonies, and impose sanctions for non-compliance.
This revision of the AAA rules, through open public comments, aims to address stakeholder input while enhancing procedural and substantive aspects of arbitration.
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