Stand Alone Arbitration Agreement

On the other hand, arbitration can be very positive for the majority of employment rights on the basis of public common law (such as breach of contract, deliberate addition of emotional distress, and wage and hourly disputes). Such claims are generally simple and arbitrators are better familiar with government standards of evidence and state law. One of the common ways in which employers attempt to implement a mandatory arbitration program is an arbitration agreement contained in a staff manual. However, several courts have recently found that some arbitration agreements contained in employee manuals are unenforceable. The courts have argued that, although agreements are favoured under the law, arbitration agreements are, by their nature, always contracts and must follow the principles of the common contract formation law. Round 11. The eleventh circle has established certain general requirements that a court should consider when deciding whether an arbitration agreement could exclude litigation with federal rights. In Paladino v. Avnet Technologies, Inc., 134 F.3d 1054 (11.

Cir. 1998), above, the court argued that an arbitration agreement would not prohibit litigation unless the following three factors were met: Adams left Circuit City a year later and shortly thereafter, wrote a letter requesting arbitration to challenge its benefits. When Circuit City failed to respond to Adams` arbitration request, he sued Circuit City and three of his superiors in Sonoma County Superior Court for discrimination and sexual harassment. The opinion of the Second District of Esparza emphasizes the fact that California law opposes the application of arbitration agreements contained in workers` manuals. While the second district has not really stated that such arbitration agreements are invalid, the court has asked judges to submit a further review of the exact text of the manuals and employee recognitions. A threshold question is: are mandatory arbitration clauses in employment contracts applicable? If your current or potential employer asks you to sign an arbitration agreement, you should consult an experienced employment law professional in New Jersey.