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November 2002 Revisions
National Rules for the Resolution of Employment Disputes
(Including Mediation and Arbitration Rules)
As Amended and Effective on November 1, 2002

Reproduced with permission of the American Arbitration Association 
335 Madison Avenue, Floor 10, New York, NY 10017-4605 
Phone 212-716-5800.

Click here for the full text of the Rules 

The National Rules for the Resolution of Employment Disputes (Including Mediation and Arbitration Rules) were revised, effective November 1, 2002, as follows:

1.) In the Administrative Fee Schedule section for disputes arising out of employer-promulgated plans, the Administrative Fee subsection was changed to read as follows:

“The AAA's administrative fees are based on filing and service charges.  Arbitrator Compensation is not included in this schedule.  Unless the employee chooses to pay a portion of the arbitrator's compensation, such compensation shall be paid in total by the employer.  Arbitrator compensation and administrative fees are not subject to reallocation by the arbitrator(s) except upon the arbitrator's determination that a claim or counterclaim was filed for purposes of harassment or is patently frivolous.”

2.) In the Administrative Fee Schedule section for disputes arising out of employer-promulgated plans, the Filing Fees subsection was changed to read as follows:

“In cases before a single arbitrator, a nonrefundable filing fee, capped in the amount of  $125, is payable in full by the employee when a claim is filed, unless the plan provides that the employee pay less.  A nonrefundable fee in the amount of $375 is payable in full by the employer, unless the plan provides that the employer pay more.

In cases before three or more arbitrators, a nonrefundable filing fee, capped in the amount of $125, is payable in full by the employee when a claim is filed, unless the plan provides that the employee pay less.  A nonrefundable fee in the amount of  $1,375 is payable in full by the employer, unless the plan provides that the employer pay more.”

3.) In the Administrative Fee Schedule section for disputes arising out of employer-promulgated plans, the Hearing Fees subsection was changed to read as follows:

“For each day of hearing held before a single arbitrator, an administrative fee of $300 is payable by the employer.

For each day of hearing held before a multi-arbitrator panel, an administrative fee of $500 is payable by the employer.

There is no AAA hearing fee for the initial Arbitration Management Conference.”

4.) In the Administrative Fee Schedule section for disputes arising out of employer-promulgated plans, the Hearing Room Rental subsection was changed to read as follows:

“The hearing fees described above do not cover the rental of hearing rooms, which are available on a rental basis.  Check with the administrator for availability and rates.  Hearing Room Rental fees will be borne by the employer.”

5.) The introductory paragraph of the Administrative Fee Schedule section for disputes arising out of individually-negotiated employment agreement and contracts was changed to read as follows:

“The AAA's Commercial Fee Schedule, listed below, will apply to disputes arising out of individually-negotiated employment agreements and contracts, even if such agreements and contracts reference or incorporate an employer-promulgated plan.  Any questions or disagreements about whether a matter arises out of an employer-promulgated plan or an individually-negotiated agreement or contract shall be determined by the AAA and its determination shall be final.”

6.) Rule 38 Administrative Fees was changed to read as follows:

“As a not-for-profit organization, the AAA shall prescribe filing and other administrative fees to compensate it for the cost of providing administrative services.  The AAA administration fee schedule in effect at the time the demand for arbitration or submission agreement is received shall be applicable.

AAA fees shall be paid in accordance with the Administrative Fee Schedule (see pages 32-35).

The AAA may, in the event of extreme hardship on any party, defer or reduce the administrative fee. (To ensure that you have the most current information, see our Web site at www.adr.org).”

7.) Rule 39 Expenses was changed to read as follows:

“Unless otherwise agreed by the parties, the expenses of witnesses for either side shall be borne by the party producing such witnesses.  All expenses of the arbitration, including required travel and other expenses of the arbitrator, AAA representatives, and any witness and the costs relating to any proof produced at the direction of the arbitrator, shall be borne by the employer, unless the parties agree otherwise or unless the arbitrator directs otherwise in the award as provided for in the Administrative Fee Schedule.”

8.) Rule 40 Neutral Arbitrator’s Compensation was changed to read as follows:

“Arbitrators shall charge a rate consistent with the arbitrator's stated rate of compensation.  If there is disagreement concerning the terms of compensation, an appropriate rate shall be established with the arbitrator by the AAA and confirmed to the parties.

Any arrangement for the compensation of a neutral arbitrator shall be made through the AAA and not directly between the parties and the arbitrator.  Payment of the arbitrator's fees and expenses shall be made by the AAA from the fees and moneys collected by the AAA for this purpose.”

9.) Rule 41 Deposits was changed to read as follows:

“The AAA may require deposits in advance of any hearings such sums of money as it deems necessary to cover the expenses of the arbitration, including the arbitrator's fee, if any, and shall render an accounting and return any unexpended balance at the conclusion of the case.”

10).  The following paragraph has been added to the end of the Administrative Fee Schedules for both disputes arising out of both employer-promulgated plans and individually-negotiated employment agreements:

“Parties on cases held in abeyance for one year by agreement, will be assessed an annual abeyance fee of $300.  If a party refuses to pay the assessed fee, the other party or parties may pay the entire fee on behalf of all parties, otherwise the matter will be closed."

©2002 American Arbitration Association. All Rights Reserved.

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