Arbitrator Fees: Hourly Rates & Fee Structures (2026)

Arbitrator Fees: Understanding Hourly Rates and Structures

If you are considering arbitration, one of the first questions on your mind is probably "how much does an arbitrator charge?" Understanding arbitrator fees is a practical first step before committing to the process. Most arbitrators charge between $200 and $1,000 or more per hour in 2026, depending on their experience, location, and the institution managing the case. But hourly rates are only part of the picture. This article breaks down the main fee structures, what influences rates, and how to budget accurately.

For a broader look at total arbitration expenses beyond arbitrator compensation, see our guide to How Much Does Arbitration Cost? Complete Fee Guide.

What Determines an Arbitrator's Hourly Rate

The arbitrator hourly rate is not set by a single formula. Several factors push that number up or down:

Experience and Credentials

Arbitrators who are retired federal or state judges, or who hold decades of practice in a specialized field, command premium rates. A retired judge handling complex commercial disputes may charge $750 to $1,200 per hour, while a newer arbitrator with 5 to 10 years of practice in a less specialized area might charge $200 to $400 per hour. According to an American Bar Association survey published in Dispute Resolution Magazine (Spring 2017), the median arbitrator hourly rate in private commercial arbitration was approximately $600, with a wide spread from $375 to over $1,125.

Subject Matter and Complexity

A straightforward consumer dispute over a defective product will typically cost far less in arbitrator time than a multi-party international construction case involving millions of dollars and technical expert witnesses. Specialized subject matter -- securities litigation, intellectual property, or energy sector disputes -- often demands arbitrators with niche expertise, and that expertise carries a price premium.

Geographic Market

Arbitrators in major metropolitan markets like New York, Los Angeles, and Chicago charge higher rates than those in smaller cities. Court-annexed arbitrators in Oregon, for example, are approved at $125 to $175 per hour, while private arbitrators in California commonly charge $500 to $1,000 per hour.

Common Arbitrator Fee Structures

Not every arbitrator bills by the hour. Three primary pricing models exist, and knowing which one applies to your case helps you predict costs accurately.

Hourly Rate Billing

This is the most common structure in private domestic arbitration. The arbitrator tracks all time spent on the case -- reviewing filings, conducting pre-hearing conferences, presiding over hearings, researching legal issues, and drafting the final award. Rates typically range from $200 to $1,000+ per hour in 2026. For a case requiring 40 to 60 hours of total arbitrator time, the arbitrator cost for compensation alone can range from $12,000 to $60,000 or more.

One detail many parties overlook: arbitrator time includes more than hearing days. Study time (reading briefs, reviewing evidence) and award-writing time are billed at the same rate. In a document-heavy dispute, an arbitrator may spend more hours reviewing materials than presiding over hearings.

Per Diem (Daily) Rate

Some arbitrators quote a flat daily rate for hearing days, typically covering a seven-hour session. Per diem rates generally range from $1,500 to $5,000 per hearing day, with top-tier arbitrators in high-stakes matters charging $10,000 or more per day. Non-hearing work (study time, award drafting) may still be billed hourly, so ask about this split before agreeing to terms.

Flat Fee or Capped Fee

For smaller or more predictable disputes, some arbitrators offer a flat fee covering the entire case from start to finish. This structure is common in consumer arbitration administered through institutions. For instance, under the AAA's Consumer Arbitration Fee Schedule, arbitrator compensation for consumer cases is set at $300 per hour, but the total exposure is more predictable because consumer procedures are streamlined.

Flat-fee arrangements give parties budget certainty. However, if a case grows unexpectedly complex, the arbitrator may request an adjustment -- so review the fee agreement for scope-change provisions.

For strategies on keeping these costs manageable, take a look at Reducing Arbitration Costs: Strategies for Savings.

Institutional Fee Schedules vs. Private Arbitrator Rates

The arbitrator's personal compensation and the administrative fees charged by the institution are separate line items.

Institutional Arbitration

When you file through an institution, you pay two categories of fees: (1) administrative or filing fees to the institution, and (2) the arbitrator's compensation. Some institutions set or cap the arbitrator's rate. For example, FINRA pays its arbitrators a fixed honorarium of $300 per hearing session, with an additional $250 per day for the panel chairperson (FINRA Rule 12214). In contrast, institutions handling complex commercial cases generally allow arbitrators to charge their market rates.

Under the AAA's Employment Arbitration Fee Schedule, arbitrator compensation is based on the rate listed in the arbitrator's biography at the time of appointment -- meaning the rate is market-driven rather than institution-controlled.

Independent (Ad Hoc) Arbitration

In ad hoc arbitration -- where parties agree to arbitrate without an institution -- the arbitrator's rate is entirely negotiable. Parties can shop for competitive rates, but there is no institutional oversight of fee reasonableness. The ICDR Arbitrator Billing Guidelines (revised June 2024) recommend that arbitrators provide written fee disclosures before appointment, covering hourly rates, estimated hours, retainer requirements, and cancellation policies.

If you are weighing your options for finding the right neutral, our article on How to Select an Arbitrator: Criteria and Process covers what to look for beyond just price.

Hidden Fee Components to Watch For

Several additional charges beyond the headline rate can increase total arbitrator fees:

• Cancellation and postponement fees. If a hearing is postponed within a set window (often 10 to 14 days before the scheduled date), the arbitrator may charge a full or partial day rate. Under FINRA rules, for instance, an arbitrator receives $600 if a hearing is cancelled within 10 days of the scheduled session.
• Travel and expenses. If the arbitration requires in-person hearings, the arbitrator may bill for travel time (sometimes at a reduced rate) plus airfare, hotel, and meals.
• Retainer deposits. Many arbitrators require an advance deposit -- often covering 10 to 20 hours of estimated work -- before the case begins. This retainer is drawn down against billed time, with unused portions refunded.
• Award-writing fees. Some arbitrators charge a separate or premium rate for drafting a reasoned or explained award, as opposed to a standard award that simply states the outcome.

For a deeper look at expenses that can surprise parties, see Hidden Costs in Arbitration: What to Watch For.

Who Is Responsible for Paying the Arbitrator?

Fee allocation varies by agreement, institutional rules, and the arbitrator's discretion:

• Split equally. Many arbitration clauses and institutional rules default to splitting the arbitrator's fees 50/50 between the parties.
• Loser pays. Some agreements or rules give the arbitrator authority to assign all or part of the fees to the losing party.
• Consumer and employment protections. In consumer and employment arbitration, fee-shifting rules often limit the individual's share. Under the AAA Consumer Fee Schedule, the consumer's contribution is capped at modest amounts, with the business bearing the rest. The U.S. Supreme Court in Green Tree Financial Corp.-Alabama v. Randolph, 531 U.S. 79 (2000), held that prohibitively high costs could deny a claimant access to the arbitral forum.

Our detailed breakdown on this topic is available at Who Pays for Arbitration? Fee Allocation Rules.

Practical Tips for Managing Arbitrator Costs

You have more control over arbitrator cost than you might think. A few strategies can make a real difference:

1. Request fee disclosures early. Before agreeing to an arbitrator, ask for a written fee schedule that covers hourly rate, estimated hours, retainer requirements, and cancellation terms.
2. Consider a sole arbitrator. A three-arbitrator panel triples the compensation expense. For disputes under $500,000, a single arbitrator is often sufficient and dramatically reduces cost.
3. Streamline the process. Fewer hearing days means fewer billed hours. Agreeing on stipulated facts, limiting the number of witnesses, and submitting focused briefs can all shorten the timeline.
4. Choose a digital platform. Online arbitration eliminates travel charges for both you and the arbitrator, and digital document exchange reduces time spent organizing physical evidence.
5. Negotiate the rate. Arbitrators in private practice expect some negotiation, especially for cases with a lower amount in controversy. Do not assume the published rate is the final rate.

For a side-by-side look at how these expenses compare to courtroom litigation, read Arbitration vs Court Costs: Which is Cheaper?.

How Arbitration.net Can Help

Managing arbitrator fees does not have to be a guessing game. At Arbitration.net, our fully digital platform reduces the overhead that drives up costs -- no travel, no physical hearing rooms, and no paper filings. Cases move faster online, which means fewer billable hours for everyone involved.

Whether you need help understanding fee structures, selecting a qualified arbitrator, or filing a new claim, visit arbitration.net to get started or connect with us at (888) 885-5060. For affordable options, see our guide to Free or Low-Cost Arbitration Options.

Frequently Asked Questions

How much does an arbitrator charge per hour in 2026?

Most private arbitrators charge between $200 and $1,000 per hour, with the median around $600 for commercial disputes. Retired judges and specialists in complex fields like securities or intellectual property often charge at the higher end of this range. In institutional consumer arbitration, rates may be fixed -- the AAA sets arbitrator compensation at $300 per hour for consumer cases.

What is the difference between an arbitrator's hourly rate and a per diem rate?

An hourly rate applies to all time the arbitrator spends on your case, including study, hearings, and award drafting. A per diem rate is a flat daily fee for hearing days, typically covering a seven-hour session. Many arbitrators use a per diem rate for hearing days and an hourly rate for non-hearing work, so it is important to clarify which model applies before the case begins.

Are arbitrator fees negotiable?

Yes, in most private arbitration settings. Independent arbitrators set their own rates and often expect parties to discuss terms before appointment. You can negotiate the hourly rate, the retainer amount, or even request a fee cap for the entire engagement. In institutional arbitration, the institution may set or cap rates, leaving less room for negotiation.

Do both parties have to pay the arbitrator, or does one side cover the full cost?

The default in many arbitration agreements is an equal 50/50 split between the parties. However, some agreements allow the arbitrator to allocate fees to the losing party. In consumer and employment disputes, institutional rules often cap the individual's share, requiring the business to pay the balance. Review your arbitration clause and applicable rules to understand your specific obligation.

Where can I find an arbitrator with transparent fee information?

Visit arbitration.net to explore a digital platform that matches you with qualified arbitrators and provides clear cost information upfront. You can also reach our team at (888) 885-5060 to get answers about pricing before you commit to anything.

This article is for educational purposes and should not be taken as legal advice. For guidance specific to your dispute, consult a qualified attorney or reach out to Arbitration.net for more information.