The American Arbitration Association is a nonprofit organization that manages arbitration and mediation cases, but it does not decide who wins or provide the mediation itself

The American Arbitration Association (AAA) is often confused with a mediator or judge, but it is actually an administrator. When two parties agree to resolve a dispute through arbitration or mediation instead of court, the AAA handles the paperwork, schedules the hearing, maintains the rules, and keeps the process moving. The actual mediator or arbitrator — the person who listens to both sides — is someone else, usually a retired judge or lawyer that the AAA appoints from its roster.

The AAA operates in all 50 states and handles disputes in consumer contracts, employment, construction, commercial agreements, and insurance claims. You encounter it most often when you sign a contract that includes an arbitration clause — language saying that if there is a disagreement, both sides promise to use arbitration instead of suing in court. That clause usually names the AAA as the administrator.

The organization does not represent either side, does not give legal information, and does not make the final decision. It is the referee and the scorekeeper, not a player in the game.

Key Takeaways

  • The AAA administers the process but does not mediate or arbitrate — it appoints a neutral third party, schedules hearings, and enforces procedural rules.
  • Most people encounter the AAA because a contract they signed includes an arbitration clause naming the AAA as the administrator.
  • You can also choose to use the AAA voluntarily if you and another party both agree to resolve a dispute outside court.
  • The AAA charges filing fees and hearing fees that are split between the parties or assigned according to the arbitrator's decision.
  • Arbitration through the AAA is usually faster and more private than court, but you give up the right to appeal and to a jury trial.

How the AAA arbitration process works step by step

When arbitration begins through the AAA, the first step is filing a demand for arbitration. The party bringing the complaint (called the claimant) submits a written statement to the AAA describing the dispute and the amount of money or relief being sought. The AAA assigns a case number, collects a filing fee from the claimant, and sends a copy of the demand to the other party (called the respondent).

The respondent then has a set number of days — usually 30 — to file a response. If the respondent does not respond, the arbitrator can still proceed and may rule against them. Once both sides have submitted their initial statements, the AAA provides a list of potential arbitrators. Each side can reject a certain number of candidates without giving a reason, and the remaining arbitrator is appointed.

The arbitrator then schedules a hearing, which is usually held in person but can be conducted by videoconference or telephone. Both sides present evidence, call witnesses, and make arguments. The arbitrator listens and then issues a written decision called an award. The entire process typically takes three to six months, though it can be faster or slower depending on the complexity of the case and how busy the arbitrator is.

The difference between AAA arbitration and AAA mediation

The AAA administers both arbitration and mediation, but they work very differently. In arbitration, the arbitrator hears both sides and makes a binding decision — a decision that is final and almost impossible to overturn, even if one side thinks the arbitrator made a mistake. In mediation, the mediator does not make any decision. Instead, the mediator helps both sides talk to each other and find their own solution. If mediation fails, the dispute can still go to arbitration or court.

Many AAA cases start with mediation. If the two parties cannot reach an agreement during mediation, they can then move to arbitration with the same AAA administrator handling the paperwork. Some contracts require mediation first, then arbitration if mediation does not work.

Arbitration is faster and more final, but it costs more because you are paying an arbitrator to make a decision. Mediation is usually cheaper because the mediator is just facilitating conversation, not judging. The trade-off is that mediation only works if both sides are willing to compromise.

What fees the AAA charges and who pays them

The AAA charges a filing fee when a case is opened. The amount depends on the amount of money in dispute — a small claim might have a filing fee of $200 to $300, while a large commercial dispute might be $3,000 or more. The claimant pays this fee upfront when submitting the demand for arbitration.

The AAA also charges hearing fees, which are the costs of the arbitrator's time and the use of AAA facilities. These fees are usually split between the two parties, though the arbitrator can order one side to pay all or most of them if that side loses. Hearing fees vary widely depending on the arbitrator's hourly rate and how many hours the hearing takes.

If you are in a consumer dispute — for example, a disagreement with a credit card company or an online retailer — the contract may say that the company pays all AAA fees. This is common in consumer arbitration clauses because otherwise the cost of arbitration might be so high that a consumer could not afford to bring a claim. Always check your contract to see who is responsible for fees.

When you might use the AAA voluntarily instead of court

You do not have to wait for a contract to force you into AAA arbitration. If you and another party have a dispute and you both agree that arbitration makes sense, you can contact the AAA directly and start a case. This is common in business-to-business disputes where both sides want to avoid the time and publicity of a lawsuit.

Voluntary arbitration through the AAA is often chosen because it is faster than court — most cases resolve in months rather than years. It is also private; court cases are public record, but arbitration hearings and awards are confidential unless both sides agree otherwise. The process is also less formal than court, which can make it less intimidating and less expensive.

However, arbitration has real drawbacks. You cannot appeal an arbitrator's decision the way you can appeal a court judgment. You also do not have a jury, and you cannot use many of the discovery tools available in court — for example, you may not be able to force the other side to turn over as many documents. Before choosing arbitration, it is worth understanding what you are giving up.

How to learn about your contract includes an AAA arbitration clause

If you have signed a contract with a company — a credit card agreement, an employment contract, a software license, a rental agreement, a brokerage account — it may include an arbitration clause. These clauses are often buried in the fine print, sometimes under a heading like "Dispute Resolution" or "Legal Proceedings."

To find it, search the contract for the words "arbitration," "arbitrate," "AAA," or "American Arbitration Association." If you see language saying that disputes will be resolved through arbitration rather than in court, and it names the AAA, then you are bound by that clause if you signed the contract. Some clauses also say that you waive your right to a jury trial or to join a class action lawsuit.

If you are unsure whether a clause applies to your situation, you can contact the AAA directly with a copy of the contract. The AAA can tell you whether it would administer a case under that clause, though it cannot give you legal information about whether you are bound by it. For that, you would need to speak with a lawyer.

What happens if you refuse to arbitrate when a contract requires it

If a contract says you must arbitrate disputes and you try to sue in court instead, the other party can ask the court to dismiss your case and send it to arbitration. Courts generally enforce arbitration clauses because they are contracts that both sides agreed to. The only exceptions are if the clause is unconscionable — meaning so unfair that no reasonable person would have agreed to it — or if there is evidence that you were tricked or coerced into signing.

If the court dismisses your case and orders arbitration, you will have to pay the AAA filing fee and proceed through the AAA process. This is why it is important to read arbitration clauses before signing a contract. If you do not want to arbitrate, you may be able to negotiate the clause out of the contract before you sign, or you may decide not to do business with that company.

Frequently Asked Questions

Can I appeal an AAA arbitrator's decision?

No. An arbitrator's award is final and binding. You cannot appeal it to a higher court the way you can appeal a judge's decision. The only narrow exceptions are if the arbitrator exceeded their authority, committed fraud, or violated a rule so serious that it prevented you from presenting your case. These grounds are very difficult to prove.

Does the AAA take sides or favor one party over the other?

No. The AAA is a neutral administrator. It does not represent either side and does not have an interest in who wins. The arbitrator appointed by the AAA is also required to be neutral and to disclose any conflicts of interest. If you believe an arbitrator is biased, you can challenge their appointment before the hearing begins.

What if I cannot afford the AAA filing fee?

You can ask the AAA for a fee waiver or reduction based on financial hardship. The AAA has a process for this, and it grants waivers in many cases. If your contract is a consumer contract, the company may be required to pay your fees anyway. Contact the AAA directly to discuss your situation.

Is arbitration faster than going to court?

Usually, yes. Most AAA arbitrations are resolved within three to six months, while court cases often take one to three years. However, speed depends on the complexity of the case, how busy the arbitrator is, and whether both sides cooperate. Some arbitrations move slowly if there is a lot of evidence to review.

Can I have a lawyer represent me in AAA arbitration?

Yes. You have the right to hire a lawyer and have them represent you throughout the arbitration process. However, you will have to pay the lawyer's fees yourself unless your contract or the arbitrator's decision says otherwise. This is different from some court cases where the losing side pays the winner's attorney fees.