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

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Requirements for Arbitration Agreements in Illinois

Illinois allows employers to require employees to sign arbitration agreements. However, there are certain requirements that must be met for such agreements to be enforceable.

According to ^[4.3], an arbitration agreement must be in writing and signed by the parties. It can be in the form of an arbitration clause in a contract or a separate agreement. The agreement must clearly state that the parties are waiving their right to a trial and agreeing to resolve any disputes through arbitration.

Additionally, ^[4.2] specifies that the arbitration agreement must be contained in a document that is in writing and signed by the parties. The agreement can also be in the form of an exchange of letters, telex, telegrams, or other means of telecommunication that provides a record of the agreement.

It is important to note that the arbitration agreement cannot be unconscionable or against public policy. For example, an arbitration agreement that requires an employee to waive their right to file a complaint with a government agency would likely be unenforceable.

Conclusion

In summary, employers can require employees to sign arbitration agreements in Illinois, but the agreements must be in writing, signed by the parties, and cannot be unconscionable or against public policy.

Source(s):

• [4.2] 710 ILCS 30/1-5
• [4.3] 710 ILCS 30/5-5

Jurisdiction

Illinois

• Labor