NJ courts reaffirm enforceability of electronic arbitration agreements

On March 7, 2023, the New Jersey Appellate Division ruled that a former employee must arbitrate her race discrimination claims rather than pursue them in court because she electronically acknowledged a mutual agreement to arbitrate (MAA) when she was hired. The decision further confirms the growing acceptance of arbitration agreements by the New Jersey courts in New Jersey Law Against Discrimination (NJLAD) cases.

Facts

Dakota Powell was hired as a sales representative for Prime Comms Retail LLC (an AT&T retailer) on October 15, 2020. At her time of hire, she was sent an email with an individual username and temporary password to log into the company’s HR portal.

In addition to resetting her password, Powell also needed to add her name, Social Security number, and date of birth. Once she registered on the HR portal, she was required to review and sign the company’s policies, including its MAA. She was also required to sign and agree to the company’s agreement to receive electronic information and use electronic signatures.

The MAA clearly stated, “My electronic signature on this document is governed by my Agreement to Receipt of Electronic Information and Use of Electronic Signatures.” Prime’s HR director thereafter certified Powell’s execution of the HR policies and agreements and explained they are all required to be signed by new hires as a condition of receiving pay.