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

Yes, you can require employees to sign arbitration agreements in New Jersey, but the agreement must meet certain requirements to be enforceable.

Requirements for Arbitration Agreements in New Jersey

According to NJAC 12:105-1.1, the rules and regulations contained in the chapter shall be deemed a part of an arbitration agreement between parties whenever in their collective bargaining agreements or submissions they have provided for arbitration through the New Jersey State Board of Mediation or under its rules. This means that the arbitration agreement must be in writing and must clearly state that the parties agree to submit any disputes arising out of the employment relationship to arbitration.

Additionally, the arbitration agreement must be entered into voluntarily and not as a condition of employment. The agreement must also be fair and reasonable to both parties, and the employee must have the opportunity to consult with an attorney before signing the agreement.

Initiation of Compulsory Interest Arbitration

Compulsory interest arbitration may be initiated through appropriate utilization of any of the following:

1. In the event of a continuing impasse following receipt of a fact-finder’s findings of fact and recommended terms of settlement, a petition requesting that an impasse be resolved through compulsory interest arbitration may be filed by an employee representative and/or public employer.
2. On or after the date on which their collective negotiations agreement expires, either party may file a petition with the Director of Conciliation and Arbitration requesting the initiation of compulsory interest arbitration.

Special Disciplinary Arbitration Panel

The Commission maintains a Special Disciplinary Arbitration Panel to hear cases involving the disciplinary terminations of law enforcement officers and firefighters from a law enforcement agency or department that is not subject to the provisions of Title 11A of the New Jersey Statutes. Members of this panel must have experience and expertise as neutrals making decisions in employee discipline cases. Following a screening process as set forth in NJAC 19:12-6.2, they shall be appointed for three-year terms.

Conclusion

In summary, you can require employees to sign arbitration agreements in New Jersey, but the agreement must be in writing, entered into voluntarily, and fair and reasonable to both parties. The initiation of compulsory interest arbitration can be done through a petition filed by either party. The Special Disciplinary Arbitration Panel is available to hear cases involving the disciplinary terminations of law enforcement officers and firefighters.

Jurisdiction

New Jersey

• Labor