Is It Permitted? Are There Limitations on the Practice?
When you have a dispute with an employee, it’s usually in your best interests to avoid a civil dispute, where a jury may sympathize with the little guy. For that reason, you may require your employees to agree to resolve any employment law matters through binding arbitration. Is this permissible under the law? Are there specific matters that cannot be handled through arbitration in New York?
Binding Arbitration Is Generally Allowed in New York Employment Law Disputes
The Federal Arbitration Act, which governs most employment law disputes in the state of New York, allows employers to mandate that all employees agree to binding arbitration of an employment law dispute. An employee may be required to sign such an agreement as a condition of employment, but such agreements will only be enforceable if they are mutual, clearly written, and not considered unconscionable by the court.
Under New York state law, though, while an employee may voluntarily agree to take a discrimination or harassment claim to binding arbitration, a worker may not be compelled to do so. New York law does permit an employer to require that a worker waive any rights to be a party to a class-action claim.
Let Stephen Hans & Associates Protect Your Rights with Respect to Your Employees
At Stephen Hans & Associates, we have successfully advised and represented many New York City employers for years, helping them meet employment law requirements and protecting their rights in employment litigation, including hiring and termination matters. Susan Lacerte, executive director of the Queens Botanical Garden has lauded us for our “dedication, knowledge and experience” and for helping the Botanical Gardens “successfully resolve difficult legal issues with [our] talent, negotiating skills, personal care and attention.”
Our experienced attorneys are glad to answer your questions and provide legal advice. Our offices are conveniently located in Long Island City with easy access from Manhattan.