Employee 'unaware' of signed arbitration agreement compelled to arbitrate

When launching an arbitration agreement, you must understand the pros and cons of requiring your employees to sign one as well as which workers should be covered and the hurdles of enforcement. Depending on the potential value of the claim to be arbitrated, the filing fee could result in a five-figure charge just to initiate an action. On the other hand, a properly written agreement could prevent an employee from proceeding with a collective action on behalf of other similarly situated workers. Read on for an example of an arbitration agreement that worked well for an Arizona employer.

Facts

A former supermarket clerk called out from work 13 times in a two-month period because of asthma flareups. He claims the absences should have placed the employer on notice of his need for Family and Medical Leave Act (FMLA) leave.

The employer didn't provide him with notice of his rights under the FMLA. Rather, it removed him from the work schedule allegedly in an attempt to force him to quit and seek other employment. The clerk filed a complaint in the U.S. District Court for the District of Arizona alleging retaliation for exercising his rights under the Act.

Compelling arbitration

In response to the complaint, the supermarket asked the court to dismiss the litigation and compel arbitration. The employer alleged the clerk's claims were subject to mandatory arbitration under his employment agreement.