Arbitration agreements can be a common part of workplace life. As with any potentially legally binding contractual agreement, it is extremely important to understand the exact legal ramifications of what you’re signing before you do anything. It is also important to understand exactly when your employer can claim that you’ve assented to the arbitration agreement by doing nothing. When it comes to these and other legal issues that can impact you as a worker, you should be sure you have a skilled New Jersey employment attorney to provide you the advice and advocacy you need.
One case originating in Union County provided some useful information on arbitration agreements, as well as on what does (or doesn’t) qualify as a valid passive assent to an agreement. The case followed a fact pattern that is probably similar to what occurs at many workplaces. The employer decides to establish an optional arbitration agreement. The employer sends the affected employees an email containing the policy. The email explains that the policy is not mandatory and includes instructions for opting out of the arbitration agreement. The email also includes a requirement that the employee acknowledge having reviewed the agreement.
In the summer of 2017, the assistant store manager at a wireless employer’s Union store filed a lawsuit alleging that the employer had engaged in racial and gender discrimination. The employer then asked the trial court to order the case to arbitration. The employer asserted that it was entitled to an order compelling arbitration because the manager had never completed the “opt out” requirements. According to the employer, it had asked the manager to acknowledge reviewing the agreement. Allegedly, the manager initially did nothing, but eventually acknowledged reviewing the agreement. She allegedly took no further action.