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

Yes, employers can require employees to sign arbitration agreements in Iowa, subject to certain requirements.

Requirements for Arbitration Agreements in Iowa

According to IACO 679A.1, a written agreement to submit to arbitration an existing controversy is valid, enforceable, and irrevocable unless grounds exist at law or in equity for the revocation of the written agreement. Additionally, a provision in a written contract to submit to arbitration a future controversy arising between the parties is valid, enforceable, and irrevocable unless grounds exist at law or in equity for the revocation of the contract.

However, there are exceptions to this rule. The subsection shall not apply to any of the following:

  • A contract of adhesion.
  • A contract between employers and employees.
  • Unless otherwise provided in a separate writing executed by all parties to the contract, any claim sounding in tort whether or not involving a breach of contract.

Therefore, employers must ensure that the arbitration agreement is not a contract of adhesion and that it does not involve any claims sounding in tort.

Proceedings to Compel or Stay Arbitration

If an employee refuses to arbitrate despite the existence of a valid and enforceable agreement, the employer can apply to the district court to order the parties to proceed with arbitration. On the other hand, if the employee denies the existence of a valid and enforceable agreement to arbitrate, the district court shall proceed to the determination of the issue and shall order arbitration if a valid and enforceable agreement is found to exist. If no such agreement exists, the court shall deny the application. [IACO 679A.2]

Therefore, employers can require employees to sign arbitration agreements in Iowa, subject to the requirements mentioned above.

[2.1] provides information on binding arbitration in Iowa, while [4.1] outlines the qualifications for the interest arbitrator mentorship program.

Source(s):
Jurisdiction

Iowa