> why do arbitrators ever rule against the companies that pay their fees?
Both sides choose the arbitrator. If an individual arbitrator consistently rules against one category of claimants or defendants, lawyers will steer clients against them and they won’t get paid.
The arbitration service is paid by the company, usually, which is a win for the consumer. But the arbitrator is individually paid only if they’re selected. (They’re also usually retired judges, et cetera.)
Thank you. That does make sense. But as pointed out by the article, typical consumers/workers have no idea about how to choose an arbitrator and do not hire a lawyer.
Both sides choose the arbitrator. If an individual arbitrator consistently rules against one category of claimants or defendants, lawyers will steer clients against them and they won’t get paid.
The arbitration service is paid by the company, usually, which is a win for the consumer. But the arbitrator is individually paid only if they’re selected. (They’re also usually retired judges, et cetera.)