Legal Definitions - interest arbitration

Definition: Interest arbitration is a type of dispute resolution where a neutral third party is chosen by the parties involved to settle the terms of a contract being negotiated. The arbitrator's decision is binding and final.

Examples:

• In labor law, interest arbitration is used to settle disputes between employers and employees over what provisions will be included in a new collective-bargaining agreement.
• Interest arbitration is most commonly used in public-sector collective bargaining.

These examples illustrate how interest arbitration is used to resolve disputes between parties who cannot agree on contractual terms. The arbitrator's decision is final and binding, which helps to avoid lengthy legal battles and allows the parties to move forward with their negotiations.