Legal consequences of nonunion dispute-resolution systems

No longer is alternative dispute resolution merely a trendy topic of the conference circuit. For many employers, ADR is now a key aspect of human resources management. A growing number of employers have implemented their own incarnation of alternative dispute resolution; others are actively considering the option; and still others are interested but hesitant for any of a number of reasons. This article explores the legal benefits and drawbacks to implementing internal dispute-resolution systems in the nonunion setting. Special attention is given to the key issue of preclusion--that is, the weight or effect to be given the decision of the internal system in later judicial or administrative proceedings. The article concludes by addressing the question: What is the cost to an employer of chasing the golden goose of preclusion?