Arbitration Agreement Not Signed By Employer

Susan Gorlach was in charge of the sports club`s staff („TSC”). In 2010, TSC revised its personnel manual to obtain an arbitration agreement that all employees had to sign as a condition of employment. Gorlach was responsible for distributing the new manual to staff and obtaining signed arbitration agreements. At the end of June 2010, Gorlach told the Chief Operating Officer that, with the exception of four employees of the company, the arbitration agreement had been signed. It did not mention that it had not signed the agreement. In late July 2010, Gorlach, while still collecting employee signatures, suggested that TSC would „think” about how the company would act if an employee refused to sign. Gorlach resigned the following month and sued TSC for unlawful reporting, sexual harassment and retaliation. The Court of Appeal first found that arbitration is a matter of contract and that a party cannot be compelled to arbitrate unless it has agreed to do so. In addition, the party that wants to impose arbitration has the burden of proving the existence of a valid arbitration agreement. At Arboleda v.

White Glove Enterprise Corp., et al 2020 WL 89007 (Ca. Div. 2d), a company attempted to require its employees to reduce their rights to pay and time based on an agreement that employees had not signed. Arboleda examines the limits of an employer`s power to require its employees to arbitrate. Under Texas law, the elements of a valid contract are: (1) an offer, (2) an acceptance, (3) a meeting of spirits, (4) the agreement of each party on terms and (5) the execution and delivery of the contract with the intention that it be reciprocal and binding. According to the Tribunal, this case depended on whether SKEPOA admitted to being related when it had not signed the agreement. As a general rule, the parties express their mutual consent by signing an agreement. However, signature is not mandatory and the Texas Supreme Court has ruled that the FAA does not require the parties to sign an arbitration agreement to be enforceable as long as the agreement is written and agreed upon by the parties. To this end, the non-signature of an agreement by a party becomes unenforceable if the terms of the contract require the signing of a party to make the agreement binding. This case shows a trap for the unwary. When an employer intends to require workers to sign an arbitration agreement as a condition of employment or maintenance of employment, it must obtain a signed agreement. In addition, the employer should consider developing a system to verify that these signatures are collected, including the signatures of management members.

Jackson Lewis` lawyers are available to answer questions about this case and how to ensure that arbitration agreements are enforceable. Employers are not always perfect for ensuring that every document completed at the beginning of a working relationship is signed by the right people. However, the Shank decision highlights a danger that can arise if no written contract is signed by both parties. The Tribunal found that this language was a clear and unequivocal statement of the mutual intention that the parties would only relinquish their trial rights if they signed the agreement.