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

Requirements for Requiring Employees to Sign Arbitration Agreements in Maine

Yes, you can require employees to sign arbitration agreements in Maine. However, there are certain requirements that must be met.

According to MERS Section 1393, a consumer arbitration agreement not allowed under federal law is void and unenforceable. Additionally, in the provider’s initial notice or communication to a consumer, the provider must clearly and conspicuously disclose the estimated expenses of any arbitration, including the filing fee, the average daily cost for an arbitrator and hearing room, any other charge that an arbitrator or provider may assess, and the proportion of expenses borne by each party if the consumer prevails and if the consumer does not prevail. An expense required to be disclosed does not include attorney’s fees. A person required to disclose an expense does not violate this subsection when an actual expense exceeds an estimate if the estimate was reasonable and made in good faith. A violation of the expense disclosure requirement does not render the consumer arbitration agreement unenforceable but may be considered by a court in a determination of whether the agreement is unconscionable or otherwise unenforceable under another law. If a provider violates the expense disclosure requirement, a person or the Attorney General may request a court of competent jurisdiction to enjoin the provider in violation from violating the requirement in a subsequent consumer arbitration. A provider found to be in violation of this section or that conforms to this section after an action is commenced is liable for the court costs and reasonable attorney’s fees of the party bringing the action [1.1].

Furthermore, MERS Section 951 states that a written provision in any collective bargaining contract to settle by arbitration a controversy thereafter arising out of such contract or out of the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, or such refusal, shall be valid, irrevocable and enforceable, save upon such grounds, independent of the provisions for arbitration, as exist at law or in equity for the revocation of any contract [2.2].

MERS Section 5927 also states that a written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract. This chapter also applies to arbitration agreements between employers and employees or between their respective representatives, unless otherwise provided in the agreement [3.1].

Therefore, if you require employees to sign arbitration agreements in Maine, you must ensure that the agreements comply with the expense disclosure requirements outlined in MERS Section 1393. Additionally, if the arbitration agreement is part of a collective bargaining contract or a written contract, it must comply with the requirements outlined in MERS Sections 951 and 5927.

Conclusion

In conclusion, you can require employees to sign arbitration agreements in Maine, but you must ensure that the agreements comply with the requirements outlined in MERS Sections 1393, 951, and 5927.

Source(s):
Jurisdiction

Maine