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Can I require employees to sign arbitration agreements in Arkansas? What are the requirements?

Here is the response to your query:

Requirements for Arbitration Agreements in Arkansas

In Arkansas, an agreement to arbitrate is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract [1.6]. Therefore, you can require employees to sign arbitration agreements in Arkansas. However, there are certain requirements that must be met for such agreements to be enforceable.

Mutuality of Obligation

An arbitration agreement must have mutuality of obligation to be enforceable [1.6]. This means that both parties must be bound to arbitrate their disputes. If the agreement only requires one party to arbitrate, it lacks mutuality and is unenforceable [1.6].

Unconscionability

An agreement that prohibits the consolidation of arbitration claims or proceedings or denies arbitration for a class of persons involving substantially similar issues shall be closely scrutinized and shall not be enforced if found unconscionable [1.1]. An agreement may be found unconscionable if it is unreasonable, one-sided, or contains language that is difficult to notice or to understand; a meaningful choice of whether or not to agree to the arbitration provisions of the agreement is not provided; or the agreement is not balanced or fair under reasonable standards of fair dealing [1.1].

Notice and Choice

An arbitration agreement must provide notice and a meaningful choice to the employee [1.1]. This means that the employee must be aware that they are agreeing to arbitrate their disputes and must have a choice to opt-out of the agreement if they do not wish to arbitrate [1.1].

Arbitration Process

The arbitrator may conduct an arbitration in such a manner as the arbitrator considers appropriate for a fair and expeditious disposition of the proceeding [1.2]. The arbitrator may decide a request for summary disposition of a claim or particular issue if all interested parties agree or upon request of one party to the arbitration proceeding if that party gives notice to all other parties to the proceeding, and the other parties have a reasonable opportunity to respond [1.2]. If an arbitrator orders a hearing, the arbitrator shall set a time and place and give notice of the hearing not less than five days before the hearing begins [1.2]. At a hearing under subsection (c), a party to the arbitration proceeding has a right to be heard, to present evidence material to the controversy, and to cross-examine witnesses appearing at the hearing [1.2].

Initiation of Arbitration

A person initiates an arbitration proceeding by giving notice in a record to the other parties to the agreement to arbitrate in the agreed manner between the parties or, in the absence of agreement, by certified or registered mail, return receipt requested and obtained, or by service as authorized for the commencement of a civil action [1.4]. The notice must describe the nature of the controversy and the remedy sought [1.4].

Conclusion

You can require employees to sign arbitration agreements in Arkansas, but the agreements must have mutuality of obligation, not be unconscionable, and provide notice and a meaningful choice to the employee. The arbitration process must be conducted in a fair and expeditious manner, and the initiation of arbitration must be done by giving notice to the other parties in the agreed manner or by certified or registered mail.

Source(s):
Jurisdiction

Arkansas