Employment disputes need mediation now more than ever, especially in light of the American Arbitration Association’s (AAA) sweeping changes to its Employment/Workplace Arbitration Rules as of May 1, 2025. These updates make arbitration less predictable and more complicated for everyone involved, underscoring why mediation is the smartest and most reliable first step for resolving workplace issues.
What Changed in the AAA Rules?
Broader Scope: The AAA rules now explicitly cover disputes involving independent contractors, not just employees. This means that even solo contractors may be required to arbitrate, with companies bearing significant upfront costs often exceeding $2,500 before an arbitrator is even chosen.
Dispositive Motions Discouraged: Arbitrators must consider the “time and cost” of dispositive motions, making it harder to dismiss weak claims early, thus increasing time and expense for all parties.
Less Confidentiality: AAA will now publish summaries of arbitration awards, with names redacted, reducing the privacy that many parties expect from arbitration.
Retroactive Application: The new rules extend to existing arbitration agreements, which many never anticipated when drafting their contracts.
Why Mediation Is The Better Choice
There are many reasons why mediation has always been the better choice than trial or arbitration for employment cases; however, the AAA’s changes to its Employment/Workplace Arbitration Rules now make the differences even more clear:
Predicable, Transparent Costs: Mediation means fair, pre-set costs shared by both parties, eliminating the risk of surprise fees or sudden rule changes. Everyone knows what to expect from the start.
Real Efficiency: Unlike arbitration—where procedural limitations can slow everything down—mediation lets participants focus on the core of the dispute and quickly work toward meaningful resolutions.
Complete Confidentiality: Mediation offers true privacy. No awards are published, and everything said remains confidential, preserving the reputations and interests of both parties.
- Control Over the Process: Mediation allows parties to select their mediator and how they want to structure discussions, rather than becoming subject to ever-changing institutional rules.
Mediation Suits Today's Workplace
Let’s be honest, mediation just fits the current workplace better than trial or arbitration:
Independent Contractor Disputes: Whether the issue is classification or contract terms, mediation clarifies and resolves these conflicts without the harsh, binary outcomes arbitration can impose.
Employment Conflicts: Workplace disputes are often about relationships, communication, and underlying issues that formal proceedings can’t address. Mediation provides space for honest discussion and creative solutions.
Business Relationships: When future collaboration matters, mediation preserves working relationships instead of burning bridges through adversarial methods.
The Bottom Line
The latest AAA rule changes reveal how institutional arbitration can shift in unforeseen ways, undermining predictability and privacy for anyone bound by these agreements. Mediation, in contrast, remains consistently focused on what matters most: cost control, efficiency, real confidentiality, and practical solutions for both sides.
Instead of risking more uncertainty under new arbitration frameworks, make mediation the first step for resolving workplace disputes—protecting valued relationships, financial peace of mind, and lasting solutions for all.
Why Mediation?
Mediations can be intimidating, especially if you have never participated in one before. They can also be anxiety invoking and scary to someone who has never participated in one before. This guide will help you understand how mediation works, to set you up for success. By being prepared, we can even the power dynamic so that all parties start on the same footing.
