What do you do when the customer doesn't pay or your employee won't listen to reason? If you're like most of us, your first instinct is to sue the jerk that stiffed you and fire the employee. Both of these may cause you great pain and suffering in the pocketbook, so another solution is necessary! Here are some suggestions that could make the whole job easier. First a few descriptions then the meat of how to do it. Understand, I am not an attorney and I don't practice law, so before you do anything concerning legal matters, seek competent advice.

NEGOTIATION
A problem-solving good-faith attempt at reaching an agreement between two people. No one else is involved. Briefly put, it is you and the other party sit across from each other in an attempt to solve the problem. This works best in the early stages of a dispute.

CONCILIATION
This third-party directed method explores options, asks questions, and tries to reach an agreement. The Conciliator should NOT impose solutions, but often tries. Either party can reject the agreement, then it's off to find another solution.

FACT FINDING
Often used in grievances. The Fact Finder DOES make recommendations, attempts to persuade the loser (or perceived loser) that the facts lead to a specific conclusion. Usually not worth too much, but can be of some help in employee-employer disputes to ward off a lawsult.

OMBUDSMAN
An on-site person hired by management to solve employee-management problems--get the picture? As distancing as Ombudsmen try to be, they DO work for management.

MEDIATION
A method that CAN be successful if the Mediator doesn't try to impose a solution. The Mediator acts as a negotiator, going back and forth between parties to find a meeting point. Great in solving problems before lawsuits where there is measurable damage. Mediation is NOT usually binding, but is a compromise between two positions. Both parties need to agree beforehand that they will accept the results, but they don't have to. Good because it puts the final deal somewhere between the two parties.

ARBITRATION
Probably the best method of solving problems. Arbitration is usually binding, and there is no recourse. Of course you stand the possibility that the Arbitrator will decide against you, but it beats litigation all hollow!

Arbitration is wonderful, but some states don't recognize it as an alternative to a lawsuit, and your attempt to short-cut the legal process may be doomed from the start. $50 for an opinion from an attorney could be money well spent.

LAWSUIT
This should be your absolute last selection. Not only is it extremely expensive, lawsuits can drag out for years before being settled. On the other hand, what the judge and jury says is the way it will be. Righ t or wrong, you will have to pay for an attorney, and believe me, there is a lot of money flowing under the bridge until you get to court, and you may lose no matter how tenable your position!

HOW TO MAKE THESE WORK FOR YOU
Whichever method you decide to use, you need to put language in your contracts with employees, customers, suppliers and others that state so mething like: Disputes will be settled by (XXXXXXXXXXX). Since each state has different rules, you will need the help of an attorney to select the precise language.

Setting up a dispute resolution is not easy. Some states will not recognize one or more of the dispute resolution processes. In these states your only recourse may be a lawsuit.

Probably the largest obstacle is determining whether your state accept s arbitration written in an employee contract. This is called implicit arbitration, and in some states has been denied unless the agreement also meets the state law for contract formation. It is recommended that employees be advised of the arbitration provision as part of the offer process, that procedurally fair rules be used in the arbitration process, and that there be other substantive remedies included in the contract.

SUGGESTIONS
There are associations of each of the dispute resolution methods above. Check your local phone directory, call and ask if they provide help in writing contracts. Since there is a clear judicial trend to enforce arbitration, you should seriously consider placing arbitration text i n ALL of your contracts. For sure . . it can save you money in the long run!