Arbitration Agreements In Employment Contracts Template for United States

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Key Requirements PROMPT example:

Arbitration Agreements In Employment Contracts

"I need an Arbitration Agreement in Employment Contracts for our California-based tech startup that specifically addresses remote workers across multiple states, with particular emphasis on protecting intellectual property and including class action waivers where permitted by state law."

Document background
Arbitration Agreements in Employment Contracts are increasingly common in U.S. workplace relationships as employers seek to manage litigation risks and costs. These agreements establish a framework for resolving employment-related disputes through arbitration rather than traditional court proceedings. They must be carefully drafted to ensure compliance with federal laws (including the Federal Arbitration Act), state-specific requirements, and recent legislative developments such as the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. The agreement typically covers dispute resolution procedures, cost allocation, and the scope of claims subject to arbitration.
Suggested Sections

1. Parties: Identification of employer and employee entering into the arbitration agreement

2. Background/Purpose: Context of the agreement and its integration with employment relationship

3. Definitions: Key terms used throughout the agreement including 'Arbitration', 'Claims', 'Dispute'

4. Scope of Agreement: Specific claims covered and excluded from arbitration

5. Arbitration Procedures: Process for initiating and conducting arbitration, including arbitrator selection

6. Costs and Fees: Allocation of arbitration costs between parties

7. Governing Law: Applicable law governing the agreement

8. Acknowledgment and Signatures: Formal acceptance of terms by both parties

Optional Sections

1. Class Action Waiver: Optional provision to waive right to participate in class actions, subject to state law restrictions

2. Confidentiality Provisions: Optional requirements for maintaining confidentiality of arbitration proceedings when privacy is important

3. Discovery Procedures: Optional specific rules for information exchange during arbitration when parties want defined discovery limitations

4. Severability Clause: Optional provision ensuring partial invalidity doesn't void entire agreement when agreement contains multiple independent provisions

Suggested Schedules

1. Schedule A - Arbitration Rules: Detailed procedures and rules governing the arbitration process

2. Schedule B - Claims Covered: Comprehensive list of claims subject to arbitration

3. Schedule C - Claims Excluded: List of claims specifically excluded from arbitration

4. Appendix 1 - Fee Schedule: Detailed breakdown of arbitration costs and fee allocation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Federal Arbitration Act (FAA): Primary federal law governing arbitration agreements that establishes validity and enforceability of arbitration agreements and preempts conflicting state laws

Title VII of the Civil Rights Act: Federal legislation ensuring arbitration agreements don't waive substantive rights and addresses discrimination claims consideration

National Labor Relations Act (NLRA): Federal law addressing restrictions on class action waivers and protection of concerted activity rights in employment arbitration

Age Discrimination in Employment Act (ADEA): Federal law establishing special requirements for handling age discrimination claims in arbitration agreements

State Arbitration Laws: Various state-specific laws governing arbitration procedures and requirements that must be considered alongside federal laws

Epic Systems Corp. v. Lewis (2018): Supreme Court precedent establishing the enforceability of class action waivers in employment arbitration agreements

Mutual Consideration Requirement: Legal requirement that both parties must receive something of value in exchange for agreeing to arbitration

Procedural Fairness Requirements: Legal standards ensuring the arbitration process is fair, including neutral arbitrator selection, reasonable discovery, and fair cost allocation

Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021: Federal law prohibiting mandatory arbitration of sexual harassment claims in employment contracts

State Employment Laws: State-specific employment regulations that must be considered when drafting arbitration agreements to ensure compliance with local requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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