Employers that want to use arbitration to avoid protracted legal battles can include arbitration agreements in their applications and require applicants to sign as a hiring condition. That’s provided the agreement isn’t entirely one-sided.
Recent case: When CarMax fired Michael, he sued for discrimination. But he had signed an arbitration agreement that was featured prominently on the original employment application. The agreement granted both sides the right to arbitrate claims and allowed for discovery and an outside, impartial decision-maker.
The court said Michael was bound by the agreement and couldn’t sue in court. (Sanchez v. CarMax, No. B244772, Court of Appeal of California, 2nd Appellate District, 2014)
Final note: Drafting an arbitration agreement is no do-it-yourself project. Ask your attorneys for guidance so it will stand up in court.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Sample Policy: Absenteeism/tardiness
- Confidential customer lists may be trade secrets even if the names are available elsewhere
- The death of one-size-fits-all benefits: Tailor rewards to generational differences
- Stamp out harassment without trampling on free speech