Mutual Agreement to Arbitrate Employment-Related Disputes (US)

by Practical Law Labor & Employment

A Standard Document that provides a stand-alone mutual agreement for employers and employees in the US to resolve employment-related disputes through binding arbitration. Governed by the Federal Arbitration Act (FAA), this Standard Document is drafted to reflect key legal developments, including the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA). It addresses crucial threshold issues like contract formation and arbitrability, offering guidance to minimize challenges based on unconscionability. The agreement defines the scope of arbitrable matters by including a broad range of covered claims while specifically carving out claims that cannot be compelled to arbitration, such as certain whistleblower claims under the Sarbanes-Oxley Act (SOX) and charges before administrative agencies. This Standard Document also includes important optional clauses, including a class and collective action waiver, provisions for discovery and motion practice, and terms addressing the preclusive effect of an award, to help parties tailor the agreement to their specific needs. For state-specific employment arbitration resources, see State Employment Litigation and Arbitration Toolkit: State-Specific Resources.