Recently, you accepted a job as the head of HR for a large company with 5,000 employees in the United States, approximately 1,000 of whom work in California. Despite its size, the company is family owned. The owners are three sisters. They make decisions unanimously. Last week, a former California employee requested his personnel file. As you reviewed his personnel file before sending it to him, you realize that the file does not contain an arbitration agreement.

You ask your subordinates in the HR department who have longer tenure than you with the company. They all say that they do not believe that the company has ever had arbitration agreements. You are unaware if anyone has ever brought up the issue of arbitration agreements with ownership.

You decide that you want the owners to make informed decisions about employment law concerns and decide to brief them on the advantages and disadvantages of rolling out mandatory arbitration agreements for all current and future employees.

Discuss the advantages and disadvantages of implementing mandatory arbitration agreements for all employees.