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

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

Requirements for Arbitration Agreements in New Mexico

1. Voluntary Agreement: The agreement to arbitrate must be voluntary and not coerced. Employees cannot be forced to sign the agreement as a condition of employment.
2. Clear and Conspicuous Language: The agreement must be written in clear and conspicuous language so that employees can understand the terms of the agreement.
3. Notice of Right to Legal Action: The agreement must include a notice that employees have the right to pursue legal action in court and that they are waiving that right by signing the agreement.
4. Mutual Agreement: Both the employer and employee must agree to the terms of the arbitration agreement.
5. Enforceable Agreement: The agreement must be enforceable under New Mexico law.

In addition, an arbitrator may award punitive damages or other exemplary relief if such an award is authorized by law in a civil action involving the same claim and the evidence produced at the hearing justifies the award under the legal standards otherwise applicable to the claim. An arbitrator may also award reasonable attorney’s fees and other reasonable expenses of arbitration if such an award is authorized by law in a civil action involving the same claim or by the agreement of the parties to the arbitration proceeding. As to all remedies other than those authorized by Subsections (a) and (b), an arbitrator may order such remedies as the arbitrator considers just and appropriate under the circumstances of the arbitration proceeding. ^[1.2]

Source(s):

• [1.2] Remedies; fees and expenses of arbitration proceeding.

Jurisdiction

New Mexico

• Labor