Physician Contract Glossary · Disputes
Arbitration Clause
An arbitration clause requires disputes to be resolved by a private arbitrator instead of in court, often waiving your right to sue.
An arbitration clause sends contract disputes to a private arbitrator rather than to a courtroom. It is usually faster and confidential, but it often waives your right to a jury trial and to appeal, and the rules can favor the party that drafted the contract, which is the employer. Mandatory binding arbitration limits your options if a serious dispute arises.
Notice whether arbitration is mandatory and binding, who selects the arbitrator, and who pays the cost. A clause that lets the employer pick the arbitrator or saddles you with the fees tilts the field before any dispute begins.
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