The week before Thanksgiving, Kansas City, Mo.-based Cerner gave its employees a choice: They could give up their right to sue the company over labor matters or give up their right for merit-based pay raises.
Marlene Bentley, a Cerner spokeswoman, says 93 percent of Cerner's approximately 17,000 U.S. employees have relinquished their right to sue in favor of pay raises. For those giving up the right to sue, Cerner will handle legal complaints through arbitration instead of in court.
"The arbitration process is more beneficial than traditional litigation for both associates and Cerner," Ms. Bentley says. "It's generally quicker, more private and less expensive."
Signing the agreement is voluntary for employees, and there is no deadline by which employees have to sign. However, employees who signed up for the agreement by Tuesday, Dec. 8 were given a $500 bonus in Cerner stock options. While those that do not accept the arbitration agreement are no longer eligible for merit-based raises, they could still receive raises through promotions, Dan Smith, a Cerner spokesman, said in The Kansas City Star.
The vendor has recently faced several lawsuits alleging it did not pay proper overtime to employees, according to The Kansas City Star.
Mike Hodgson, a local attorney not linked to any legal actions against Cerner, told The Kansas City Star tying arbitration agreements to eligibility for raises is uncommon.
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