The Economic Policy Institute has estimated that by 2024, about 80 percent of U.S. workers will be required to sign a condition of employment. Arbitration agreements often eliminate your sworn rights for all sorts of labor claims, including violations of Title VII of the Civil Rights Act, the Family Medical Law Act, and the Fair Labor Standards Act. Typically, an arbitration agreement is presented to someone at the time of hiring (either as part of a longer employment contract or as a separate document). But sometimes a company decides to ask current employees to sign an agreement. In both cases, we often ask ourselves: do I have to sign the agreement? If signing an employment contract is a condition of employment, whether you are about to join the company or be an employee, you must sign it if you want the position. Under California law and any other state law, an employer can refuse (or terminate) if you refuse to settle all of your labor disputes. 9. My employer asks me to sign an arbitration agreement that waives my right to bring a class action.
Is it legal? It is important to remember that national contract law determines whether an arbitration agreement is applicable. While arbitration agreements are generally correct, the specific laws of a state cannot impose a specific arbitration agreement based on the facts of that case or contract. The question of consideration in contract law is a good example of how this works. An important concept in contract law is that a valid contract must be based on appropriate “consideration”.