Archives for September 2014

Keeping the Arbitration Clause Applicable: Avoiding Unconscionability

arbitration agreements

It’s long been a humorous observation that Americans are litigation-happy, but in many ways, it’s based in truth: When Americans feel they have been treated poorly, they often seek redress in the courts.  No group on the country knows this more keenly than employers, who have, in recent years, sought to stem the tide of employment-related litigation with the inclusion of binding arbitration agreements in employee contracts.

The key to these arbitration clauses, however, is making them applicable when the time comes: Few employees dispute these clauses at the moment they accept employment, but many seek to invalidate them when they want to file a suit.  It’s a turbulent time in the law when it comes to the relatively novel use of these arbitration clauses, and nothing seems settled – but the single biggest threat to your arbitration clause is the test of unconscionability. [Read more…]