ADR Terms to Know

Alternative Dispute Resolution (ADR) can involve a variety of processes and terminology that may be unfamiliar to those new to the concept. Understanding these key terms is essential for anyone considering ADR as a method for resolving workers' compensation claims. In this article, we define important ADR-related terms to help you better understand how the process works and the roles involved.

Common ADR Terms Explained

1. Mediation Mediation is a process where a neutral third party, called a mediator, helps the disputing parties communicate and work towards a mutually agreeable solution. The mediator does not have the power to impose a decision but instead facilitates productive dialogue between the parties.

2. Arbitration Arbitration involves a neutral third party known as an arbitrator who listens to both sides of the dispute and then makes a binding decision. Unlike mediation, arbitration results in a definitive outcome that both parties must accept.

3. Settlement Conference A settlement conference is an informal meeting between disputing parties, often overseen by a neutral party, to discuss possible solutions and negotiate a settlement. The goal is to resolve the dispute before formal hearings or litigation.

4. Ombudsperson An ombudsperson acts as a liaison between the injured worker and the employer. They guide the injured worker through the ADR process, answer questions, and recommend appropriate actions, including medical treatments.

 

Additional ADR Terminology

5. Carve-Out A carve-out is an agreement between an employer and a union that creates an ADR program specifically for workers' compensation claims. The agreement is designed to streamline the resolution of disputes and reduce litigation by providing an alternative to the traditional workers' compensation system.

6. Collective Bargaining Agreement This is a formal contract between an employer and a union, outlining the rules and procedures for an ADR program. It ensures that both parties understand their rights and responsibilities in the ADR process.

7. Labor-Management Committee In ADR programs, a labor-management committee oversees the implementation and administration of the program. This committee usually includes representatives from both the employer and the labor union to ensure fair treatment for all involved.

 

The ADR Process - Key Concepts

8. Neutral Evaluator A neutral evaluator is an impartial expert who assesses the strengths and weaknesses of each party's case. This evaluation helps the parties understand their positions better and may guide them towards a settlement.

9. Mini-Trial A mini-trial is a structured settlement process where each side presents a summarized version of their case to a panel. The panel, which may include decision-makers from each party, then attempts to negotiate a resolution.

10. Negotiated Rulemaking Negotiated rulemaking is a process in which representatives from different sides work together to draft rules and procedures. In the context of ADR, it helps establish ground rules that both parties agree to follow throughout the dispute resolution process.

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