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

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Requirements for Arbitration Agreements in North Dakota

Yes, employers can require employees to sign arbitration agreements in North Dakota. However, the agreements must meet certain requirements to be valid and enforceable.

According to NDCC Section 32-29.4-04[2.1], an arbitration agreement must:

  1. Be in a record signed by the parties;
  2. Identify the arbitrator, an arbitration organization, or a method of selecting an arbitrator; and
  3. Identify the family law dispute the parties intend to arbitrate.

An agreement in a record to arbitrate a family law dispute that arises between the parties before, at the time, or after the agreement is made is valid and enforceable as any other contract and irrevocable except on a ground that exists at law or in equity for the revocation of a contract.

Filing of Briefs and Final Offer Arbitration Agreements

NDAC Section 69-02-10-27[1.1] requires the petitioner and the respondent to each file a post-hearing brief and a final offer arbitration agreement no later than ten days after the filing of the hearing transcript. The post-hearing briefs of each party must summarize all relevant portions of its final offer arbitrated agreement and cite legal authority and evidence to support the adoption of its agreement.

Initiation of Arbitration

To initiate an arbitration proceeding, a person must give notice in a record to the other parties to the agreement to arbitrate in the agreed manner between the parties or, in the absence of agreement, by certified or registered mail, return receipt requested and obtained, or by service as authorized for the commencement of a civil action. The notice must describe the nature of the controversy and the remedy sought. Unless a person objects for lack or insufficiency of notice under subsection 3 of section 32-29.3-15 not later than the beginning of the arbitration hearing, the person by appearing at the hearing waives any objection to lack of or insufficiency of notice[3.2].

Participation in the Arbitration Process

Participation in the arbitration process must be limited to the petitioning party, the responding party, and the commission staff. Commission staff personnel may participate in both advocacy or advisory roles. In the event staff participates in an advocacy role, the commission will employ its split staff procedures to designate advocacy and advisory staff members. An individual staff person may not be permitted to serve in both an advocacy and advisory role[1.3].

Validity of Agreements to Arbitrate

An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract. The court shall decide whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate. An arbitrator shall decide whether a condition precedent to arbitrability has been fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable[3.3].

Motion to Compel or Stay Arbitration

On motion to a person showing an agreement to arbitrate and alleging another person’s refusal to arbitrate pursuant to the agreement, if the refusing party does not appear or does not oppose the motion, the court shall order the parties to arbitrate. If the refusing party opposes the motion, the court shall proceed summarily to decide the issue and order the parties to arbitrate unless it finds that there is no enforceable agreement to arbitrate. If a person alleges that an arbitration proceeding has been initiated or threatened but that there is no agreement to arbitrate, the court shall proceed summarily to decide the issue. If the court finds that there is an enforceable agreement to arbitrate, it shall order the parties to arbitrate. If the court finds that there is no enforceable agreement, it may not, pursuant to subsection 1 or 2, order the parties to arbitrate. The court may not refuse to order arbitration because the claim subject to arbitration lacks merit or grounds for the claim have not been established[3.4].

Notice of Arbitration Hearing

Within fifteen days after the prehearing conference, the commission shall issue a notice of hearing specifying the disputed issues that are the subject of the arbitration proceeding. The notice of arbitration hearing must be issued as required under North Dakota Century Code Chapter 28-32. Arbitration proceedings must be open to the public[1.4].

Therefore, to require employees to sign arbitration agreements in North Dakota, the agreements must meet the requirements outlined in NDCC Section 32-29.4-04. Once an agreement is in place, the arbitration process can be initiated by giving notice to the other parties involved. The arbitration process is conducted in a manner that the arbitrator considers appropriate for a fair and expeditious disposition of the proceeding. The validity of agreements to arbitrate is determined by the court, and a motion to compel or stay arbitration can be made if necessary. Finally, the notice of arbitration hearing must be issued as required under North Dakota Century Code Chapter 28-32[1.1][2.1][3.2][1.3][3.3][1.4][3.4].

Source(s):
Jurisdiction

North Dakota