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

October 18, 2023

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

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

According to [1.4]" >MICL 423.9d, any labor dispute, other than a representation question, may lawfully be submitted to voluntary arbitration in Michigan. An arbitration agreement must be in writing, specify the issue or issues to be decided, and make provision for the payment by the parties, or either of them, of the costs and expenses of the arbitration. The agreement may include such other provisions, not inconsistent herewith, as shall be agreeable to the parties.

If the collective agreement between the employer and the labor organization provides for the use of a designated arbitrator to decide disputes thereunder, or provides the method for selection of arbitrator or arbitrators, the provisions of that agreement shall be binding upon the parties, and shall be complied with unless the parties agree to submit the dispute to some other arbitration procedure.

The arbitrator or arbitrators designated in a proceeding shall proceed to conduct hearings in the dispute within 20 days after his or their appointment. Reasonable notice of the hearings shall be given to the parties, who may appear and be heard both in person and by counsel or other representative. Hearings shall be informal, and the rules of evidence prevailing in judicial proceedings shall not be binding. Oral or documentary evidence and other data deemed relevant by the arbitrator or arbitrators may be received in evidence. Within 30 days after the conclusion of the hearing, or within such additional period as the parties shall stipulate, the arbitrator or arbitrators shall make written findings and promulgate a written opinion and award upon the issue or issues presented and shall mail or otherwise deliver a true copy thereof to each of the parties.

An agreement to arbitrate an existing or future dispute shall be enforceable in equity by any circuit court having jurisdiction.

In addition, according to [2.1]" >MIAC R 484.704, arbitrations may be conducted by a single arbitrator or a panel. If a panel is used, it shall consist of 1 or more members of the commission’s staff to be appointed by the director of the telecommunications division and the director of the regulatory affairs division, and 1 administrative law judge appointed by the administrative law manager assigned to the commission. If a non-staff arbitrator is appointed, it shall be with the concurrence of the parties and may be a person employed by, or contracted with, the state of Michigan, or may be a non-employee contractor, who shall be engaged and compensated by the parties.

According to [3.1]" >MIAC R 423.507, an arbitrator shall begin the hearing by conducting a scheduling conference within 15 days of the arbitrator’s appointment. The scheduling conference may be conducted by telephone conference call. The arbitrator shall do all of the following: make a determination on the economic issues in dispute and the duration of the collective bargaining agreement, and require each party to exchange and submit all of the following: a statement of the party’s issues setting forth the specific changes in the collective bargaining agreement proposed by the party, the party’s position as to whether each issue is economic or non-economic, and the proposed duration of the collective bargaining agreement. Absent mutual agreement, conduct a procedural hearing and advise the parties in writing of the arbitration panel’s decision on the issues in dispute including the duration of the collective bargaining agreement, jurisdiction of the arbitration panel concerning any disputed issue and, if in dispute, whether an issue presented by a party is economic. Direct each party to submit to the arbitration panel and to each other its last offer of settlement on each economic issue. The arbitrator may extend or shorten the time for taking a deposition. The arbitrator shall regulate the scope, time, and order of taking depositions to best serve the convenience of the parties and the witnesses and to expedite the arbitration.

According to [4.1]" >MICL 423.275, within 7 days after receipt of a request from 1 or both parties for arbitration of a dispute, the employment relations commission shall select from its panel of arbitrators, as provided in section 5 of Act No. 312 of the Public Acts of 1969, as amended, being section 423.235 of the Michigan Compiled Laws, 3 persons as nominees for impartial arbitrator or chairperson of the arbitration panel. Within 5 days after the selection of nominees, each party peremptorily may strike the name of 1 of the nominees. Within 7 days after this 5-day period, the employment relations commission shall designate 1 of the remaining nominees as the impartial arbitrator.

Therefore, an arbitration agreement must be in writing, specify the issue or issues to be decided, and make provision for the payment by the parties, or either of them, of the costs and expenses of the arbitration. The agreement may include such other provisions, not inconsistent herewith, as shall be agreeable to the parties. Arbitrations may be conducted by a single arbitrator or a panel. If a panel is used, it shall consist of 1 or more members of the commission’s staff to be appointed by the director of the telecommunications division and the director of the regulatory affairs division, and 1 administrative law judge appointed by the administrative law manager assigned to the commission. An arbitrator shall begin the hearing by conducting a scheduling conference within 15 days of the arbitrator’s appointment. Within 7 days after receipt of a request from 1 or both parties for arbitration of a dispute, the employment relations commission shall select from its panel of arbitrators, as provided in section 5 of Act No. 312 of the Public Acts of 1969, as amended, being section 423.235 of the Michigan Compiled Laws, 3 persons as nominees for impartial arbitrator or chairperson of the arbitration panel.

In conclusion, you can require employees to sign arbitration agreements in Michigan, but the agreement must meet certain requirements. The arbitration agreement must be in writing, specify the issue or issues to be decided, and make provision for the payment by the parties, or either of them, of the costs and expenses of the arbitration. The agreement may include such other provisions, not inconsistent herewith, as shall be agreeable to the parties. Arbitrations may be conducted by a single arbitrator or a panel. If a panel is used, it shall consist of 1 or more members of the commission’s staff to be appointed by the director of the telecommunications division and the director of the regulatory affairs division, and 1 administrative law judge appointed by the administrative law manager assigned to the commission. An arbitrator shall begin the hearing by conducting a scheduling conference within 15 days of the arbitrator’s appointment. Within 7 days after receipt of a request from 1 or both parties for arbitration of a dispute, the employment relations commission shall select from its panel of arbitrators, as provided in section 5 of Act No. 312 of the Public Acts of 1969, as amended, being section 423.235 of the Michigan Compiled Laws, 3 persons as nominees for impartial arbitrator or chairperson of the arbitration panel.

Source(s):

Jurisdiction

Michigan

Labor