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Top 7 Arbitration Agreement Elements to Ensure Enforceability

This post is part of our "Top 5 Tuesdays" series. Have an idea for a "Top 5 Tuesdays" post? Let us know!

Human resources policy and compliance experts Personnel Policy Service, Inc. recently covered the topic of employment arbitration. According to their HR Matters e-tips newsletter from this week, Seven Steps to Effective Arbitration Agreements, more employers have turned to arbitration as a means to settle employment disputes quickly and cost-efficiently.

The e-tips writers recommend, based on what they've seen in recent court decisions, the inclusion of the following seven elements when drafting fair, enforceable arbitration agreements.

1. Clear delineation of claims subject to arbitration.
2. No limitation on statutorily-imposed remedies.
3. Adequate discovery.
4. Safeguards to ensure neutral arbitrators.
5. No unreasonable employee fees or costs.
6. A written decision containing sufficient detail to ensure meaningful judicial review.
7. Adequate consideration for the arbitration agreement.

To read more of their drafting tips, access Personnel Policy Service, Inc.'s Seven Steps to Effective Arbitration Agreements.

Full post as published by National Arbitration Forum Blog on June 30, 2009 (boomark / email).