Federal & State Regulations | Alternative Dispute Resolution - Ilinois

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Summary of differences between federal and state regulations

Federal law supporting alternative dispute resolution is found in the Administrative Dispute Resolution Act of 1996, 5 USC Sec. 571 – 584, and the Federal Arbitration Act, 9 USC Sec. 1 – 16. These laws provide some detail on ADR, but also leave it to various parties (government agencies, for instance) to adopt various forms of alternative dispute resolution.

In addition to the federal law, there are numerous state laws on ADR. In fact, thirty-five states have adopted the Uniform Arbitration Act as state law. Several states have also adopted the Revised Uniform Arbitration Act.

Below is a summary of Illinois’s requirements regarding ADR. Consult the regulatory links for detailed information.

Uniform Arbitration Act

Under Illinois’ Uniform Arbitration Act, a written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable save upon such grounds as exist for the revocation of any contract.

Labor Disputes

Whenever any controversy or difference exists between an employer and his employees or the bargaining representative of such employees, the Department of Labor will, upon the written request of all parties to the dispute, provide such arbitration services as may be necessary for the resolution of such controversy or difference. This includes, but is not limited to the assignment of an arbitrator employed by the Department to hear and decide the dispute or the designation of a panel of arbitrators employed by such Department from which the parties may select an arbitrator to hear and decide the dispute.

Mediation

Uniform Mediation Act applies to mediation proceedings in the state. However, the Act does not apply to a mediation relating to the establishment, negotiation, administration, or termination of a collective bargaining relationship, or to a dispute that is pending under or is part of the processes established by a collective bargaining agreement, except that the Act applies to a mediation arising out of a dispute that has been filed with an administrative agency or court.

Employee Arbitration Act

Illinois also has an Employee Arbitration Act, which comes into play when any controversy or difference not involving questions which may be the subject of a civil action, exists between an employer employing not less than 25 persons and his employees. In such cases, the Department of Labor will upon application, visit the locality of the dispute and make a careful inquiry into the cause thereof, hear all persons interested therein who may come before it, advise the respective parties what, if anything ought to be done or submitted to by both to adjust the dispute, and make a written decision thereof.

This decision will at once be made public, will be recorded upon proper books of record kept by the Department of Labor, and a short statement thereof published in the annual report hereinafter provided for, and the Department will cause a copy thereof to be filed with the clerk of the city, town or village where said business is carried on.