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As a result of what is often perceived as costly and protracted employee-initiated lawsuits, and in the wake of the U.S. Supreme Court’s decision in Epic Systems Corp. v. Lewis, it has become more common for employers to require employees to sign arbitration agreements requiring employment disputes to be resolved through binding arbitration as a term and condition of employment. Recent cases in New Jersey have emphasized that there are several requirements that employers must consider when drafting and enforcing arbitration agreements.
Both the Federal Arbitration Act (FAA) and New Jersey Arbitration Act (NJAA) make arbitration agreements “valid, irrevocable and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.”
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