Herb is the HR Professional for his organization. He is preparing to hire a new employee, Hans, to the firm. Herb has asked Hans to agree, in writing, to mandatory arbitration as part of the employment offer. What does this agreement mean?

Mandatory arbitration is a form of alternative dispute resolution (ADR) where an employee agrees, as a condition of employment, to resolve any future legal disputes with their employer through a binding process with a neutral third-party arbitrator instead of through the court system. This agreement waives the employee's right to sue the employer in court. The Supreme Court's decision in Epic Systems Corp. v. Lewis (2018) affirmed the enforceability of these agreements under the Federal Arbitration Act, even for claims arising under other federal employment statutes.

B. This describes an internal complaint procedure, which may precede legal action but is not arbitration.
C. This describes a background check or investigation, which is unrelated to dispute resolution methods.
D. This describes a non-compete agreement or restrictive covenant, not an arbitration agreement.

1. Colvin, A. J. S. (2018). The growing use of mandatory arbitration. Economic Policy Institute. Retrieved from https://www.epi.org/publication/the-growing-use-of-mandatory-arbitration/. (This report provides a comprehensive overview of the prevalence and implications of mandatory arbitration in employment).

2. Cornell Law School Legal Information Institute. (n.d.). Arbitration. Retrieved from https://www.law.cornell.edu/wex/arbitration. (Provides the legal definition and context of arbitration).

3. Epic Systems Corp. v. Lewis, 584 U.S. (2018). (The landmark Supreme Court case affirming the legality of mandatory arbitration clauses in employment contracts).