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

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In North Carolina, employers can require employees to sign arbitration agreements. These agreements are valid, enforceable, and irrevocable except with both parties’ consent, without regard to the justiciable character of the controversy and without regard to whether litigation is pending as to the controversy [2.1].

Arbitration agreements made in North Carolina are enforceable and irrevocable, except upon such grounds as exist in law or equity for the rescission or revocation of any contract [3.1].

To initiate arbitration, a party must submit a written statement of the issues or questions in dispute to the arbitrator or panel, signed by one or more of the parties or their authorized agents. The arbitrator or panel shall appoint a time and place for the hearing, and notify the parties thereof, and may postpone or adjourn the hearing from time to time as may be necessary, subject to any time limits which are agreed upon by the parties. If any party neglects to appear before the arbitrator or panel after reasonable notice, the arbitrator or panel may nevertheless proceed to hear and determine the controversy. Unless the parties have otherwise agreed, the findings and decision of a majority of an arbitration panel shall constitute the award of the panel and, if a majority vote of the panel cannot be obtained, then the findings and decision of the impartial chairman of the panel shall constitute such award. To be enforceable, the award shall be handed down within 60 days after the written statement of the issues or questions in dispute has been received by the arbitrator or panel, or within such further time as may be agreed to by the parties [3.2].

If an opposing party denies the existence of an agreement to arbitrate, the court shall proceed summarily to determine whether a valid agreement exists and shall order arbitration if it finds for the moving party; otherwise, the application shall be denied. Upon the application of a party, the court may stay an arbitration proceeding commenced or threatened on a showing that there is no agreement to arbitrate. This issue, when in substantial and bona fide dispute, shall be immediately and summarily tried and the court shall order a stay if it finds for the moving party. If the court finds for the opposing party, the court shall order the parties to go to arbitration [2.2].

Therefore, employers can require employees to sign arbitration agreements in North Carolina, and these agreements are enforceable and irrevocable.

Source(s):
Jurisdiction

North Carolina