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

Requirements for Arbitration Agreements in Ohio

Yes, employers can require employees to sign arbitration agreements in Ohio. However, there are certain requirements that must be met for such agreements to be valid and enforceable.

Form of Arbitration Agreement

According to OHRC Section 2712.12, an arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. An arbitration agreement shall be in writing. An agreement is in writing if it is contained in a document signed by the parties or in an exchange of letters, telex, telegrams, or other means of telecommunications that provide a record of the agreement, or in an exchange of statements of claims and defenses in which the existence of an agreement is alleged by one party and not denied by another. The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement provided that the contract is in writing and the reference is such as to make that clause part of the contract. [1.2]

Enforcing Arbitration Agreement

If an employee fails to perform under a written agreement for arbitration, the employer may petition any court of common pleas having jurisdiction of the employee so failing to perform for an order directing that the arbitration proceed in the manner provided for in the written agreement, according to OHRC Section 2711.03. Five days’ notice in writing of that petition shall be served upon the employee. Service of the notice shall be made in the manner provided for the service of a summons. The court shall hear the parties, and, upon being satisfied that the making of the agreement for arbitration or the failure to comply with the agreement is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the agreement. [2.1]

Validity of Arbitration Agreement

While there are no specific requirements for arbitration agreements in employment contracts, it is recommended that employers consult with legal counsel to ensure that any such agreements comply with Ohio law. According to OHRC Section 2711.24, an arbitration agreement of the type stated in section 2711.23 of the Revised Code shall be presumed valid and enforceable in the absence of proof by a preponderance of the evidence that the execution of the agreement was induced by fraud, that the employee executed the agreement as a direct result of the willful or negligent disregard by the employer of the employee’s right not to so execute, or that the employee executing the agreement was not able to communicate effectively in spoken and written English or any other language in which the agreement is written. [2.3]

Policy of State

It is the policy of Ohio state to encourage parties to an international commercial agreement or transaction that qualifies for arbitration or conciliation pursuant to section 2712.03 of the Revised Code, to resolve disputes arising from the agreement or transaction through conciliation. The parties may select or permit an arbitral tribunal or other third party to select one or more persons to serve as the conciliator or conciliators who shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute. [1.4]

In conclusion, employers can require employees to sign arbitration agreements in Ohio, and while there are no specific requirements for arbitration agreements in employment contracts, it is recommended that employers consult with legal counsel to ensure that any such agreements comply with Ohio law. [1.2][2.1][2.3]

Source(s):
Jurisdiction

Ohio