What is the Value of Alternative Dispute Resolution (ADR)?

Alternative Dispute Resolution (ADR) was originally developed by employers and unions in the early 1990s, primarily in the union concentrated states of California, New York and Illinois. Legislation created the legal alternative to the statutory system, granting employers and unions in the construction industry the authority to “carve out” the current statutory system and implement an alternative workers’ compensation system through collective bargaining.

In California, Labor Code 3201.5 effective July 1993, permitted the establishment of a program whereas, a union and an employer or group of employers in the construction industry could collectively bargain to create an alternative to statutory workers’ compensation using ADR. The use of ADR by Unions grew over time for one simple reason: IT WORKS.