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Mass arbitration is reshaping how employers manage risk in labor and employment disputes.
In this final installment of the Mass Arbitration Series, host J.P. Duffy speaks with labor and employment partner Brian Patterson about how respondents are adapting to the growing use of mass arbitration as an alternative to class and collective actions.
They discuss how arbitration agreements — which are often designed to limit aggregate exposure — can create new operational and financial pressures when large volumes of individual claims are filed simultaneously. The conversation also highlights how claim value, filing fees and procedural rules influence whether companies pursue early settlement or defend claims on the merits.
The episode concludes with practical guidance for employers, including the importance of regularly updating arbitration clauses, aligning with evolving provider rules and avoiding inconsistent agreement frameworks across the workforce.
Episode Highlights
[2:55] What Is Mass Arbitration—and Where It Arises: Mass arbitration involves the coordinated filing of large numbers of individual claims (often by the same law firm) against a single employer. It is most common in labor and employment disputes, including wage and hour and worker classification claims.
[11:09] How Economics Shape Strategy: The value and volume of claims drive respondent strategy. Low-value claims can create settlement pressure due to filing fees, while higher-value claims may justify litigating individually.
[14:15] Why Discovery Becomes More Complex: Individual arbitrations can create inefficiencies, particularly in discovery. Respondents often face duplicative depositions and repeated document production, increasing cost and operational burden.
[16:02] Bellwethers Versus Batching: Strategic Tradeoffs: Bellwether cases allow respondents to test key issues while controlling cost and discovery. Batching can help manage case flow but may reduce strategic flexibility. The approach often depends on party alignment and leverage.
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