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

Yes, employers can require employees to sign arbitration agreements in South Carolina. The South Carolina Code of Laws provides for the validity of arbitration agreements in Section 15-48-10(a) [1.1]. However, there are certain requirements that must be met for an arbitration agreement to be enforceable.

Requirements for Arbitration Agreements in South Carolina

According to Section 15-48-10(a) [1.1], a written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable, and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract. The notice that a contract is subject to arbitration pursuant to this chapter shall be typed in underlined capital letters, or rubber-stamped prominently, on the first page of the contract, and unless such notice is displayed thereon, the contract shall not be subject to arbitration.

Furthermore, Section 15-48-30 [1.4] provides that if the arbitration agreement provides a method of appointment of arbitrators, this method shall be followed. In the absence thereof, there shall be three arbitrators with one chosen by the party making the demand for arbitration, one chosen by the party against whom demand is made, and the third being chosen by those two chosen by the parties.

Exceptions to the Applicability of the South Carolina Uniform Arbitration Act

However, there are exceptions to the applicability of the South Carolina Uniform Arbitration Act. For instance, Section 15-48-10(b)(2) [1.1] states that arbitration agreements between employers and employees or between their respective representatives are not subject to the provisions of this chapter unless the agreement provides that this chapter shall apply. Additionally, employers and employees or their respective representatives may not agree that workmen’s compensation claims, unemployment compensation claims, and collective bargaining disputes shall be subject to the provisions of this chapter, and any such provision so agreed upon shall be null and void.

Proceedings to Compel or Stay Arbitration

If an opposing party refuses to arbitrate, the court shall order the parties to proceed with arbitration, but if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue so raised and shall order arbitration if found for the moving party, otherwise, the application shall be denied [1.2].

Conclusion

In summary, employers can require employees to sign arbitration agreements in South Carolina, but the agreement must meet the requirements set forth in Section 15-48-10(a) [1.1]. Additionally, there are exceptions to the applicability of the South Carolina Uniform Arbitration Act, as outlined in Section 15-48-10(b)(2) [1.1]. If an opposing party refuses to arbitrate, the court shall order the parties to proceed with arbitration, but if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue so raised and shall order arbitration if found for the moving party, otherwise, the application shall be denied [1.2].

Source(s):
Jurisdiction

South Carolina