Ask Reggi Your Question Now
Can I require employees to sign arbitration agreements in Nevada? What are the requirements?
Requirements for Arbitration Agreements in Nevada
In Nevada, employers can require employees to sign arbitration agreements, subject to certain requirements.
According to NVRS 38.250, an agreement to submit a civil action to nonbinding arbitration must be:
- Entered into at the time of the dispute and not be a part of any previous agreement between the parties;
- In writing; and
- Entered into knowingly and voluntarily.
An agreement that does not comply with these requirements is void.
Guidelines for Establishment of Programs for Arbitration
NVRS 38.255 provides guidelines for the establishment of programs for arbitration in Nevada. The rules adopted by the Supreme Court pursuant to NRS 38.253 to provide guidelines for the establishment by a district court of a program must include provisions for a mandatory program for the arbitration of civil actions pursuant to NRS 38.250. The rules must also provide for a voluntary program for the arbitration of civil actions if the cause of action arises in the State of Nevada and the amount in issue exceeds $50,000 per plaintiff, exclusive of attorney’s fees, interest and court costs. Additionally, the rules must provide for a voluntary program for the use of binding arbitration in all civil actions.
The rules must exclude certain actions from any program of mandatory arbitration, including actions in which the amount in issue, excluding attorney’s fees, interest and court costs, is more than $50,000 or less than the maximum jurisdictional amounts specified in NRS 4.370 and 73.010, class actions, actions in equity, actions concerning the title to real estate, probate actions, appeals from courts of limited jurisdiction, actions for declaratory relief, actions involving divorce or problems of domestic relations, actions brought for relief based on any extraordinary writs, actions for the judicial review of an administrative decision, actions in which the parties, pursuant to a written agreement executed before the accrual of the cause of action or pursuant to rules adopted by the Supreme Court, have submitted the controversy to arbitration or any other alternative method for resolving a dispute, actions that present unusual circumstances that constitute good cause for removal from the program, actions in which any of the parties is incarcerated, and actions submitted to mediation pursuant to rules adopted by the Supreme Court.
Conclusion
Employers in Nevada can require employees to sign arbitration agreements, but the agreements must meet the requirements set forth in NVRS 38.250. The agreement must be in writing, entered into at the time of the dispute, and entered into knowingly and voluntarily. Additionally, guidelines for the establishment of programs for arbitration in Nevada are provided in NVRS 38.255. The rules adopted by the Supreme Court must include provisions for a mandatory program for the arbitration of civil actions pursuant to NRS 38.250, a voluntary program for the arbitration of civil actions if the cause of action arises in the State of Nevada and the amount in issue exceeds $50,000 per plaintiff, exclusive of attorney’s fees, interest and court costs, and a voluntary program for the use of binding arbitration in all civil actions. Certain actions are excluded from any program of mandatory arbitration.
Source(s):
- [1.1] Nonbinding arbitration of certain civil actions filed in district court required; nonbinding arbitration of certain civil actions filed in justice court authorized; effect of certain agreements by parties to use other alternative methods of resolving disputes.
- [1.2] Guidelines for establishment of programs for arbitration.
Jurisdiction
Nevada