How to become an arbitrator?
- Determine what type of arbitration you want to be involved in. There are three major types:
a) Commercial arbitration: This is when two businesses settle a dispute through an arbitrator. The decision-making process is very similar to that of a court, except that the parties involved in the case have agreed to use the arbitrator instead of a judge or jury.
b) Labor arbitration: This type of arbitration is used when one employee files a claim against their employer over a dispute. For example, an employee might feel they are being treated unfairly or paid unfairly compared to other employees on the same job level within their company. In these cases, they may file a complaint with an agency like the Equal Employment Opportunity Commission (EEOC). If this agency finds there was no wrongdoing on behalf of either party involved, then they will issue an order for both sides to come together and try to resolve their differences through mediation or another form of alternative dispute resolution (ADR). If this does not work within 30 days from issuance date then then case goes back into court where it will be heard by a judge instead of an arbitrator (unless both parties agree beforehand).
How To Become Arbitrator
When legal disputes occur, the parties involved sometimes need a third party to settle the issue without going to court. In these situations, people hire an arbitrator to help come to a fair resolution. If you have good decision-making and communication skills and are interested in a legal career other than being a lawyer, you might consider becoming an arbitrator. In this article, we explain what an arbitrator is, what they do and the requirements and skills involved to become one.
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What is an arbitrator?
An arbitrator, also known as a mediator or conciliator, is a neutral legal professional who works independently from either party in a dispute to resolve the issue fairly and privately. They help individuals settle cases, such as real estate disputes or divorces, without going to court. Instead of appearing before a judge and jury, the clients present their cases to the arbitrator, who makes a final decision on both parties’ behalf.
People might hire arbitrators to resolve personal and professional disagreements faster and cheaper than filing a lawsuit. Many arbitrators are lawyers, businesspeople or judges making career changes or working part-time.
Related: 60 Alternative Jobs for Lawyers
What does an arbitrator do?
An arbitrator organizes and leads the conversations and negotiations between two parties that disagree about an issue so they can find a resolution instead of going to court. They perform their job duties at neutral sites, and those responsibilities might include:
- Meeting with each party to answer questions and explain the arbitration process
- Reviewing both parties’ evidence and documentation
- Interviewing witnesses to gather information
- Arranging and overseeing discussions between parties
- Researching laws and policies to determine outcomes
- Deciding which party is liable and what they owe the other party
- Creating settlement agreements for both parties to sign
- Writing decision statements about their findings if the case does go to court
Arbitrators hold panels that are similar to court hearings, but more private and informal. They might specialize in one area where they have experience or legal knowledge, such as real estate, construction, labor relations, insurance or accounting. They might work independently or with a group of arbitrators.
How to become an arbitrator
Arbitrators usually need at least a bachelor’s degree and legal experience to get hired. Follow these common steps to become an arbitrator:
1. Earn an undergraduate degree
The minimum education requirement to become an arbitrator is a four-year bachelor’s degree. Some arbitrators have a law degree, while others have degrees in their areas of expertise, such as business, English, history, political science, public policy or social work. While pursuing your bachelor’s degree, consider taking courses that can help prepare you for an arbitrator career, such as consumer law, ethics, psychology or public speaking.
Participate in extracurricular activities at college that help you gain the necessary skills to be a successful arbitrator, which you can list on your resume when applying for entry-level jobs. These might include debate clubs or leadership positions in student organizations. Consider learning another language if you want to work in international arbitration.
2. Pursue an advanced degree
Many arbitrators choose to earn a graduate degree to improve their job and earning opportunities. Common options include:
- A law degree, which usually offers the best arbitration job opportunities
- A Master of Business Administration (MBA), which can be valuable for arbitrators specializing in business areas
- A master’s in dispute or conflict resolution, which typically includes courses in negotiation, resolution, cultural issues and other practical arbitration topics
You usually spend three years earning a law degree and two years earning a master’s. Depending on the state where you plan to live and work, you might be required to have an advanced degree to be an arbitrator.
Related: Types of Degrees for Lawyers
3. Gain work experience and training
Apply for internships or entry-level jobs that allow you to work under an experienced arbitrator, lawyer or businessperson’s supervision. Choose positions that provide you with industry knowledge and experience in the field where you want to specialize, such as construction or finance. Arbitrators usually need five to 15 years of experience working in a related area before applying for arbitration panels. For this reason, many arbitrators are experienced business or legal professionals.
If you seek further training, you can find courses through organizations such as the National Conflict Resolution Center’s Training Institute or the Mediation Training Institute.
4. Complete licensing and certification
Some states require arbitrators to be licensed attorneys or certified public accountants, both of which involve passing a rigorous series of exams. If you specialize in a field such as real estate, you might also need to obtain your real estate license. Check with your state licensing board to determine your requirements.
While not mandatory, professional certification and membership with industry organizations can improve your employment opportunities. Consider joining associations such as the National Academy of Arbitrators, the Federal Mediation and Conciliation Service or the American Arbitration Association to gain access to training and educational resources, industry events, networking opportunities and job listings. Note that professional organizations usually require you to have a minimum number of years’ experience to join.
Related: How To Become a Mediator: Certifications and Training
Skills for arbitrators
Arbitrators need the hard and soft skills to negotiate with different parties and make unbiased decisions. Common arbitrator skills include:
- Communication: Arbitrators should be able to explain laws and legal issues clearly and in terms both parties involved in a dispute can understand.
- Listening: These legal professionals should have strong active listening skills they can apply when meeting with clients and hearing each side of the case. They need to understand all the facts parties are telling them to make a well-informed decision.
- Decision-making: Arbitrators use facts, evidence, laws and regulations to make neutral decisions quickly and fairly.
- Interpersonal: Because arbitrators work with a wide range of clients and professionals, they should be approachable and respectful and get along with people easily.
- Writing: These professionals should have strong writing abilities so they can create clear and accurate settlement and decision documents.
- Negotiation: Successful arbitrators have the critical thinking skills and patience to negotiate fair settlements between potentially emotional parties.
Related: Conflict Resolution Skills: Definition and Examples
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Arbitrator salary
The average base salary for an arbitrator in the United States is $57,564 per year. Arbitrator salaries vary, however, depending on their years of experience, reputation and area of expertise. Those with law degrees usually have better earning opportunities than those without. Arbitrators who work in legal services or for local government agencies tend to earn higher salaries than those specializing in healthcare or social services.
