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

Yes, you can require employees to sign arbitration agreements in South Dakota. However, there are certain requirements that must be met.

According to SDCL 21-25B-3, the arbitration agreement between hospitals or physicians and patients must contain a warning clause in twelve-point boldface type immediately above the space for signature of the parties. The warning clause must state that the agreement to arbitrate is not a prerequisite to health care or treatment, and that by signing the contract, the parties are agreeing to have any issue of medical malpractice decided by neutral arbitration and giving up their right to a jury or court trial.

Additionally, SDCL 21-25A-1 states that 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. This chapter also applies to arbitration agreements between employers and employees or between their respective representatives.

Therefore, to require employees to sign arbitration agreements in South Dakota, the agreement must meet the requirements outlined in SDCL 21-25B-3 and SDCL 21-25A-1.

Jurisdiction

South Dakota

• Labor