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Are mandatory arbitration agreements legal?

by on
in Employment Law,Human Resources

Q. We require that our employees to agree to resolve all disputes by binding arbitration, rather than going to court. I’ve heard some government agencies have ruled those kinds of arbitration policies illegal. I don't think that could be right, but thought I better check.

A.
Binding arbitration policies are legal, provided that they meet certain requirements. However, it is also true that certain agencies, such as the EEOC and the National Labor Relations Board, take the position that employees cannot be forced to forgo filing an agency claim in favor of arbitration.

Therefore, an arbitration policy should advise employees that it does not preclude employees from filing a charge with the EEOC or an unfair labor practice charge with the NLRB. 

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