It is inevitable to avoid labor disputes at the workplace. Moreover, the Global Financial Crisis not only resulted in the threat of total collapse of large financial institutions and downturns in stock markets around the world, but also caused a significant reallocation of labor across sectors and occupations. Many workers are constrained to change jobs, occupations of sectors, leading to losses in productivity and more labor disputes. For the protection of labor rights and stabilization for employment relationship, it is necessary to establish a diverse and professional labor dispute resolution mechanism. Compared with traditional litigation, Alternative Dispute Resolution (ADR) is more flexible, economic and efficient. In response to the problems of the burgeoning civil caseload and scant judicial resources, The Judicial Yuan and the Council of Labor Affairs of the Executive Yuan encourage to utilize ADR and strengthen labor dispute resolution mechanism. The article initially discusses the types of labor disputes and the dispute settlement methods used frequently in Taiwan. It then provides an outline for the historical development and typical forms of ADR in the United States, and examines how they worked. As space is limited, the article does not discuss the new Act for Settlement of Labor - Management Disputes or other relevant laws and regulations in detail, but focuses on conciliation and mediation emerged as the two most common techniques in Taiwan. The article also briefly introduces and discusses the relevant system in the United States, which could provide a useful model for the resolution of labor disputes. Recommendations for improving the conciliation and mediation services offered by the courts and other agencies are proposed in the end of the article.