Compulsory arbitration has grown in the United States particularly in the areas of public sector employment disputes, court-annexed programs, and medical malpractice disputes. Several states have enacted legislation requiring critical public employees such as police, teachers, and firefighters to participate in arbitration as the final step in negotiating the terms of their collective bargaining agreements. Additionally, court-annexed arbitration has become compulsory for certain categories of civil cases in several state and federal district courts.

Court annexed arbitration differs from the traditional arbitration model in several ways. It often requires parties to arbitrate rather than voluntarily participating. Parties have a right to a trial if they are not satisfied with the arbitrators' award, but in some systems parties must pay court cost or arbitrators' fees if they do not have a better outcome at trial.