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

Requirements for Arbitration Agreements in Tennessee

Yes, you can require employees to sign arbitration agreements in Tennessee. The requirements for such agreements are outlined in TN Code § 29-5-302. According to this section, 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.

For contracts relating to farm property, structures or goods, or to property and structures utilized as a residence of a party, the clause providing for arbitration shall be additionally signed or initialed by the parties. The making of an agreement described in this section providing for arbitration in this state confers jurisdiction on the court to enforce the agreement under this part and to enter judgment on an award thereunder.

Additionally, all causes of action, whether there be a suit pending therefor or not, may be submitted to the decision of one or more arbitrators, except in one of the following cases: (1) Where one of the parties to the controversy is an infant or a person adjudicated incompetent; (2) One respecting a claim to an estate in real property, in fee or for life. Not included in the exception are: (A) A controversy in regard to an estate or term for one year or less or of years not exceeding five; or (B) Respecting the partition of real property, or the boundaries of lands ^[2.1].

Therefore, if you want to require employees to sign arbitration agreements in Tennessee, you must ensure that the agreement is in writing, meets the requirements outlined in TN Code § 29-5-302, and that it does not violate any grounds for revocation of a contract.

Source(s):

• [2.1] Subjects of arbitration.

Jurisdiction

Tennessee

• Labor