Arbitration policy allows opt-out? Track forms carefully — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Arbitration policy allows opt-out? Track forms carefully

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If you recently decided to use an arbitration agreement to resolve employment disagreements and allow employees to opt out, you must take steps to track the responses of any who do.

That way you’ll easily be able to persuade a court to send the case to arbitration if your records don’t show you got the form from the employee.

Recent case: Serge DuBois worked for Macy’s and sued his employer. He claimed he had opted out of the company’s arbitration policy.

But Macy’s used several methods to track who chose to opt out, including adding them to a computer list, sending confirmation letters and keeping the forms on file. Plus, Macy’s showed that it had sent DuBois a brochure welcoming him to the arbitration program.

That was enough for the court to send the case to arbitration rather than a jury trial. (DuBois v. Macy’s, No. 07-5411, 2nd Cir., 2009)

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