Weekly Brief · Practice note
What AAA arbitration costs, and who pays it
In AAA arbitration, the arbitrator receives compensation for time and services, and the parties pay administrative fees to cover the AAA's costs. The allocation of these costs depends on the arbitration agreement, the parties' choices, and applicable law.
The Editors, aaaarbitrator.com · Published August 31, 2026
Administrative fees and how they are calculated
The AAA charges administrative fees to cover the costs of administering the arbitration. These fees are based on the amount in dispute, which is called the claim value. The higher the claim value, the higher the administrative fee. For disputes with no monetary value, or when the amount cannot be determined in advance, the AAA has procedures to estimate or adjust the fees.
Administrative fees typically include the costs of case management, document handling, scheduling, and facilities. The fee structure is tiered, so parties pay different amounts depending on where their claim falls within the published ranges. The AAA publishes current fee schedules, which may change periodically.
Arbitrator compensation
The arbitrator is compensated for the time spent on the case, including reading materials, hearing preparation, the hearing itself, and decision-writing. Arbitrator compensation is typically calculated on an hourly basis. The hourly rate depends on the arbitrator's experience and the type of arbitration.
Compensation is due whether the arbitrator is hearing the case in person, conducting a hearing by videoconference or telephone, or working on written submissions. The total compensation owed will depend on how long the case takes and how much work the arbitrator performs.
Who pays these costs
The arbitration agreement or applicable law may specify how administrative fees and arbitrator compensation are split between the parties. When the agreement is silent, the parties may agree on cost allocation at any time. If the parties do not agree, the arbitrator may allocate costs at the conclusion of the case.
In some cases, one party may advance fees on behalf of both parties, or the parties may agree to split costs equally. The arbitrator has authority to order cost-shifting if the law permits—for example, where a party has acted in bad faith or where contract language or statutes allow it. The arbitrator may also make decisions about who bears the cost of the other party's attorneys' fees and expert witness fees, depending on the applicable law and the arbitration agreement.
Requesting deposits and managing cash flow
Before a hearing begins, the AAA typically requests that the parties deposit funds to cover the estimated arbitrator compensation and administrative costs. This deposit ensures that funds are available as the case proceeds. The amount requested depends on the case complexity, expected hearing length, and other factors.
As the arbitration continues, the AAA may request additional deposits if the initial estimate proves insufficient. At the end of the case, the AAA bills for all actual fees and expenses incurred. Any unused deposits are returned to the parties, or the parties are billed for any overage. The timing and mechanics of these deposits and refunds are set forth in the AAA's administrative procedures.
Sources
Related guides
- The process
How AAA arbitration works
The eight stages of an AAA commercial arbitration, from the agreement to arbitrate through a final, enforceable award. - The economics
What AAA arbitration costs
The categories of cost — administrative fees, arbitrator compensation, discovery, experts — and what actually drives the total. - The timeline
How long AAA arbitration takes
The stages that set the schedule, typical ranges, and the factors that make a matter faster or slower. - The award
Enforcing an arbitration award
Confirmation under the Federal Arbitration Act, the narrow grounds for vacatur, and cross-border enforcement under the New York Convention. - The decision
How to choose an arbitrator
What counsel weigh when evaluating neutrals, and how the AAA strike-and-rank process works. - The numbers
AAA administrative fee calculator
The published Commercial fee schedule as a readable table, with the filing and final fees for a given claim and the track it falls into.
The full library is at Learn, including arbitration versus litigation. Ready-to-adapt drafting language is at Clause & stipulation language.
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