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

Requirements for Arbitration Agreements in Delaware

In Delaware, employers can require employees to sign arbitration agreements as a condition of employment. However, there are certain requirements that must be met for such agreements to be enforceable.

According to Delaware law, arbitration agreements must be:

1. Voluntary: Employees must voluntarily agree to the arbitration agreement. Employers cannot force employees to sign the agreement as a condition of employment.
2. Clear and Conspicuous: The arbitration agreement must be clear and conspicuous. Employees must be able to understand the terms of the agreement and must be aware that they are waiving their right to sue in court.
3. Mutual: The arbitration agreement must be mutual. Both the employer and the employee must agree to submit any disputes to arbitration.
4. Unconscionable: The arbitration agreement cannot be unconscionable. This means that the agreement cannot be so one-sided that it is unfair to the employee.
5. Compliant with Delaware Law: The arbitration agreement must comply with Delaware law.

^[2.1] states that a written agreement to submit to arbitration any controversy existing at or arising after the effective date of the agreement is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract, without regard to the justiciable character of the controversy, and confers jurisdiction on the Chancery Court of the State to enforce it and to enter judgment on an award. In determining any matter arising under this chapter, the Court shall not consider whether the claim with respect to which arbitration is sought is tenable, or otherwise pass upon the merits of the dispute. This chapter also applies to arbitration agreements between employers and employees or between their respective representatives, except as otherwise provided in § 5725 of this title.

Therefore, employers can require employees to sign arbitration agreements in Delaware, provided that the agreements meet the requirements listed above and comply with Delaware law.

Source(s):

• [2.1] Effect of arbitration agreement.

Jurisdiction

Delaware

• Labor