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Arbitration Clauses in New Jersey: What You Need to Know

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In New Jersey, there has been a lot of litigation over arbitration clauses in employment agreements.. Certain requirements must be met in order for the arbitration clause to be considered valid and enforceable. For example, it cannot be ambiguous by its terms, even if the employee agreed to it. The rights that an employee waives must be clearly stated..

At the Law Firm of Jacobson & Rooks, LLC, we can help you interpret your rights under an employer’s arbitration clause, and help you to determine what the right course of action is for you.

Minimum Requirements of an Arbitration Agreement

According to a ruling by the New Jersey Supreme Court in the case of Atalese v. U.S.Legal Services Group LP, an arbitration clause must explicitly state that both parties, by entering into an agreement, are waiving any and all rights to have a jury trial. Another case, Milloul v. Knight Capital Group, Inc., et al., confirmed that this applies even in cases of statutory discrimination. Furthermore, all of the following must also be true in order for the arbitration clause to be valid:

  • Arbitration agreements must be easily readable and simple and should include specific language to notify an employee that they are waiving their right to a trial.
  • These agreements must include which claims are and are not subject to arbitration.
  • Agreements will be upheld against a successor company if it is clear and unambiguous.

Employers tout arbitration as a means of achieving an efficient resolution to conflict. Arbitration agreements have functioned as a way for employers to cut down on class-action and employment disputes. Employers claim that arbitration has several benefits over litigation, court hearings, and trials. But, arbitration is normally a secretive process, conducted out of public view without a judge or jury. The secrecy of the process prevents other employees from learning about similar concerns in the workplace.

Decisions made in arbitration are final; there is no appeal process available. While there may be some advantages to arbitration, in the employment setting, they are outweighed by the disadvantages that they present to the employee.

At the Law Firm of Jacobson and Rooks, LLC, we are equipped to help you with the challenges that an arbitration clause may present. If you have any questions about arbitration or would like to request our services, you can contact us by calling 800-406-8013 or by visiting