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

Yes, employers can require employees to sign arbitration agreements in New York, subject to certain requirements.

Requirements for Arbitration Agreements in New York

According to NYCL CVP § 7503, a notice of intention to arbitrate must be served to the employee in the same manner as a summons or by registered or certified mail, return receipt requested. The notice must specify the agreement pursuant to which arbitration is sought and the name and address of the party serving the notice. It must also state that unless the party served applies to stay the arbitration within twenty days after such service, they shall thereafter be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time.

Additionally, the demand for arbitration must include the following information [1.1]:

  • Date
  • Name of petitioner
  • Name of respondent
  • Name, title, address, electronic mail address, and telephone number of the representative of each party to whom correspondence from the director of conciliation shall be directed
  • Effective date and expiration date of agreement
  • Identification of the provision(s) in the agreement providing for arbitration, together with a copy thereof
  • Identification of the provision(s) in the agreement claimed to be violated, together with a copy thereof
  • A clear and concise description of the nature of the dispute(s) to be arbitrated and the remedy(ies) sought (include the name[s] of the grievant[s])
  • The following language, quoted verbatim, except that the board may, at its discretion, designate a different address than that provided below on the agency’s website: “THE UNDERSIGNED, A PARTY TO A WRITTEN AGREEMENT WHICH PROVIDES FOR ARBITRATION AS DESCRIBED HEREWITH, HEREBY DEMANDS ARBITRATION. YOU ARE HEREBY NOTIFIED THAT COPIES OF THIS DEMAND FOR ARBITRATION ARE BEING FILED WITH THE DIRECTOR OF CONCILIATION, NEW YORK STATE PUBLIC EMPLOYMENT RELATIONS BOARD, EMPIRE STATE PLAZA, AGENCY BUILDING 2, 20th FLOOR, ALBANY, NEW YORK 12220 WITH THE REQUEST THAT THE ADMINISTRATION OF THE VOLUNTARY ARBITRATION RULES OF PROCEDURE BE COMMENCED. PURSUANT TO THE NEW YORK ARBITRATION LAW, ARTICLE 75, SECTION 7503, CIVIL PRACTICE LAW AND RULES, YOU HAVE TWENTY (20) DAYS FROM DATE OF SERVICE OF THIS DEMAND TO APPLY TO STAY THE ARBITRATION OR BE PRECLUDED FROM SUCH APPLICATION.”
  • Signature and title of the representative serving the demand for arbitration.

It is important to note that any provision in an arbitration agreement or arbitration rules which waives the right to apply for a stay of arbitration is null and void [NYCL CVP § 7503].

Prohibited Clauses

However, it is important to note that mandatory arbitration clauses that require employees to submit to arbitration to resolve any allegation or claim of discrimination, in violation of laws prohibiting discrimination, are prohibited in New York [NYCL CVP § 7515].

Conclusion

Employers can require employees to sign arbitration agreements in New York, but the agreement must meet the requirements outlined in NYCL CVP § 7503. The notice of intention to arbitrate must be served to the employee in the same manner as a summons or by registered or certified mail, return receipt requested. The demand for arbitration must include specific information, and any provision in the agreement that waives the right to apply for a stay of arbitration is null and void. However, mandatory arbitration clauses that require employees to submit to arbitration to resolve any allegation or claim of discrimination, in violation of laws prohibiting discrimination, are prohibited in New York [NYCL CVP § 7515].

Source(s):
Jurisdiction

New York