Lawsuit vs. arbitration: What employees should know
- Christopher Stockwell
- 5 days ago
- 2 min read
Employees sometimes come to us wanting to pursue a lawsuit, but it’s not always that simple. Many workers have signed an arbitration agreement as part of their hiring paperwork, especially at larger companies. Because of this, not everyone is allowed to file a lawsuit in court.
It’s still important to understand the difference between a lawsuit and arbitration, because the two processes work very differently — and your rights can look different in each one.
What is a lawsuit?
A lawsuit is handled in court. Both sides gather and share evidence, people can be questioned under oath, and the rules are strict to help keep the process fair. A judge oversees everything, and sometimes the case is decided by a jury made up of community members.
In places like King County, juries are often seen as taking employee rights seriously. This can make a meaningful difference in cases involving discrimination, retaliation, or wrongful termination. Courtroom decisions can be appealed when something about the case wasn’t handled correctly under the law, and a higher court can review what happened.
And while lawsuits often take longer, they offer more legal protections for employees, including wider access to evidence, more transparency, and the ability to appeal.
What is arbitration?
Arbitration happens outside of court. Instead of a judge or jury, there is a single arbitrator, usually a lawyer or retired judge. The process is private and more informal, and the meetings happen in an office rather than a courtroom.
Most importantly:The arbitrator’s decision is almost always final, and it is very hard to appeal, even if the arbitrator gets something wrong.
Companies prefer arbitration because it is usually faster, private, and less costly. For employees, arbitration can feel more limited because there is no jury, fewer formal protections, and almost no opportunity to challenge the final decision. Finally, arbitration often results is smaller rewards for plaintiffs.
Why this matters for employees
You may never have been told that you signed an arbitration agreement. But it can decide your entire legal path if something goes wrong at work.
Understanding the difference helps you know what to expect, what rights you have, and how the process will feel — long before a dispute ever happens.
At Stockwell Law Firm firm we are experienced litigators and have been successful with both lawsuits and arbitrations. No matter what your situation, we'll guide you through the process with clarity and support.
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