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If you run a business, you’ve probably encountered arbitration clauses. These contractual provisions require parties to resolve disputes in private proceedings instead of court and are celebrated as a cost-effective alternative to in-court litigation. But arbitration might not always be a beneficial proposition for business disputes. Those who have arbitrated cases know the process features […]
You would think drafting an arbitration agreement should be simple enough. After all, arbitrating employment discrimination claims was court-approved several decades ago. But issues still persist, as we see in this very recent case from the El Paso Court of Appeals.
Courts have long favored arbitration as a method of dispute resolution under the Federal Arbitration Act (FAA). In 2018, the U.S. Supreme Court reinforced the policy favoring arbitration agreements in Epic Systems Corp. v. Lewis. The Court ruled that the FAA requires enforcement of arbitration agreements that fall within its scope, including agreements in which […]
On July 18, 2022, the New Jersey Appellate Division provided a perfect reminder why all employers and HR professionals should diligently confirm that new hires complete all on-boarding paperwork. It reversed a trial court’s order compelling arbitration, finding that the terminated employee’s failure to sign or acknowledge receipt of an arbitration agreement presented a factual […]
The Federal Arbitration Act (FAA) favors the enforcement of arbitration agreements, but employers can’t wait too long to compel arbitration. Courts often apply a contract “waiver” rule if employers sit on their rights too long (meaning the court finds a party waived its right to arbitrate if it failed to start the process soon enough). […]
Arbitration is a creature of agreement, and no right or obligation to arbitrate exists without a mutual agreement. Is an electronic acknowledgement on an employer’s web platform enough to prove the agreement?
The Federal Arbitration Act (FAA) enforces certain arbitration agreements involving federal law, including some employment disputes and claims against employers under the Employee Retirement Income Security Act of 1974 (ERISA). But is an arbitration agreement that prohibits an individual from seeking relief provided by federal statute still enforceable? The U.S. 7th Circuit Court of Appeals […]
Arbitration agreements are basically contracts, and they won’t be enforced absent proof both parties agreed to their terms. When the agreement is ambiguous and the ambiguity was created by the employer, one might expect a court won’t enforce the contract against the employee. But arbitration agreements are favored by some basic legal tenets, so is […]
Whether you follow sports or not, you have likely heard about the current state of professional sports, particularly the NBA, referred to as the era of “player empowerment.” And even if you aren’t familiar with this specific term, you likely know about the facts behind this trend. For example, last year, then-New Orleans Hornets superstar […]
The California Court of Appeal recently denied an employer’s appeal of a lower court’s denial of its motion to compel arbitration of a lawsuit filed by a former employee that included claims under the Private Attorneys General Act (PAGA).