NJLAD vs. Federal Arbitration Act: The Future of Employment Arbitration in NJ
The issue of whether compulsory arbitration clauses may be enforced in the future is currently pending before the United States District Court for the District of New Jersey.
March 24, 2021 at 12:00 PM
8 minute read
Many private-sector employers in New Jersey have for years required their employees to arbitrate claims of workplace discrimination, harassment, and the like. While employers have taken varied approaches to this practice—whether by including compulsory arbitration clauses in applications and handbooks, for example, or requiring employees to sign stand-alone arbitration program documents—among the most common approaches is to include a compulsory arbitration agreement in the employee's offer letter or employment contract. Whether such arbitration agreements may be enforced in the future, however, is the issue currently pending before U.S. District Judge Anne Thompson in New Jersey Civil Institute et al. v. Grewal, No. 3:19-cv-17518 ("Grewal").
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