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What is an "at-will" contract?

According to labor laws, if you have an "at-will" contract, your employer may fire you or change the terms of the contract at his will, i.e., without any reason (so long as his reason does not involve illegal discrimination). And you can quit any time you like. Contrast this with a contract for a specified period of time, where you cannot be fired without just cause and cannot quit during that period.

If there is no express agreement regarding the length of time of the contract, it is generally presumed to be at-will.

What are arbitration clauses?

In issues dealing with labor law, an arbitration clause says that if you and your employer ever get into a dispute, you agree to fight it out in front of an "arbitrator" and not in court. An arbitrator is like a private judge, and the arbitration hearing is a lot less formal than a court hearing.

Why does my employer want an arbitration clause?

Employers like arbitration because it is usually a lot cheaper than fighting in court. Also, sometimes employers use the same arbitrators over and over - and arbitrators get paid - so it is possible that the employer will think that the arbitrators might tend to be biased towards the employer. If you use an arbitrator, you can't take your case directly to a judge or jury who might be more sympathetic to your case. Arbitration is usually final and binding, so you won't be able to appeal if you lose. If you have further questions, consult with a labor law attorney in your area.