Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

Here is what you need to know about requiring employees to sign arbitration agreements in Montana:

Montana Law on Arbitration Agreements

Montana law allows employers and employees to voluntarily agree to submit any or all issues to final and binding arbitration [1.1]. Arbitration agreements between employers and employees are valid and enforceable and may be subject to all or portions of Montana’s arbitration laws if the agreement specifies so [2.1]. An arbitration agreement must be in writing, signed by the parties, and identify the arbitrator, an arbitration organization, or a method of selecting an arbitrator [4.1].

Requirements for Arbitration Agreements

An agreement to arbitrate a family law dispute that arises between the parties before, at the time, or after the agreement is made is valid and enforceable as any other contract and irrevocable except on a ground that exists at law or in equity for the revocation of a contract [4.1]. An agreement to arbitrate a child-related dispute that arises between the parties after the agreement is made is unenforceable unless the parties affirm the agreement in writing after the dispute arises or the agreement was entered during a family law proceeding and the court approved or incorporated the agreement in an order issued in the proceeding [4.1].

Disclosure Requirements

A person who has been proposed, nominated, or appointed as a neutral arbitrator pursuant to an arbitration agreement, other than one contained in a collective bargaining agreement, shall comply with the requirements of the “Fairness in Arbitration Act” [2.2]. The person proposed, nominated, or appointed as a neutral arbitrator shall disclose to each party all matters that could cause a person aware of the facts underlying a potential conflict of interest to have a reasonable doubt that the person would be able to act as a neutral or impartial arbitrator [2.2].

Conclusion

Montana law allows employers and employees to voluntarily agree to submit any or all issues to final and binding arbitration. An arbitration agreement must be in writing, signed by the parties, and identify the arbitrator, an arbitration organization, or a method of selecting an arbitrator. An agreement to arbitrate a family law dispute is valid and enforceable, while an agreement to arbitrate a child-related dispute is unenforceable unless certain conditions are met. A person proposed, nominated, or appointed as a neutral arbitrator pursuant to an arbitration agreement must comply with the disclosure requirements of the “Fairness in Arbitration Act.”

Source(s):
Jurisdiction

Montana