"Employee Arbitration Agreement Template"

What Is an Employee Arbitration Agreement?

An Employee Arbitration Agreement is a document that an employer prepares and provides to their employees at the moment of their employment. This agreement requires an employee to resolve all the disputes and claims that can appear during their employment relationship through employee arbitration.

Alternate Name:

  • Employee Arbitration Contract.

By signing this document, an employee waives their right to apply to a court on these issues. Appeal to arbitration, based on this agreement, provides the employer with the following advantages:

  1. Arbitrations are not subject to public records, and an employee can not use evidence from an employee's previous cases.
  2. Arbitrations are based on the decision of one arbitrator.
  3. An employee can not appeal against the arbitration rulings.

You can create your own Employee Arbitration Agreement using our online form builder or download our free Employee Arbitration Agreement template through the link below.

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How to Write an Employee Arbitration Agreement?

An Employee Arbitration Agreement usually contains the following:

  1. Parties to the Agreement. Enter information about an employee and an employer. Indicate the position of this employee in the company.
  2. Arbitration of Disputes.
    • Specify that all kinds of disputes and claims which may occur during the employment relationship have to be resolved by arbitration under the arbitration rules;
    • Indicate which kinds of disputes and claims are relevant to this employment agreement. For example, they can be the following: wage claims, disputes for illegal termination of the employment contract, claims connected with civil rights, employment discrimination, or disabilities, tort claims, and others;
    • Specify the period during which the employee should submit a request for arbitration to the employer. Enter the period during which the employee has to respond to all incoming correspondence received from the employer regarding the arbitration process and hearings. State that if the employer does not receive any request for arbitration from the employee during the period specified in this agreement or the employee does not respond to any incoming correspondence regarding the arbitration proceedings during the specified period, the employee will be forced to waive any right to make claims in the arbitration;
    • Indicate information about the payment of expenses related to the arbitration proceedings, and how they will be shared between the parties.
  3. Agreement with the Employer's Arbitration Policy. The employee should certify their consent with all the statements presented in this agreement, accept the arbitration policy of the employer, the terms of submitting any disputes or claims, and the conditions of paying all the costs connected with the arbitration proceedings.
  4. Signatures of the Parties.

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Employee Arbitration Agreement
This ​ E mployee Arbitration Agreement (hereinafter referred to as the “Agreement”)
is entered into as of _________________ by and between ______________________,
with a mailing address of ________________________________________________
(hereinafter referred to as the “Employer”) and ______________________, with a
mailing address of ______________________________________________________
(hereinafter referred to as the “Employee”), collectively referred to as the “Parties,”
both of whom agree to be bound by this Agreement.
The Employer believes that if a dispute related to the Employee’s current employment
arises, it is in the best interests of both the Employee and the Employer to resolve the
dispute without litigation. Most such disputes are resolved internally. When such
disputes are not resolved internally, the Employer provides for their resolution by
binding arbitration as described in this Agreement.
As a condition of and in consideration of the Employee’s employment with the
Employer or any of its direct or indirect subsidiaries, the Parties agree as follows:
1. Scope. ​ A ny and all “Covered Claims” (as defined below) between the Employee
and the Employer shall be submitted to and resolved by final and binding arbitration
in accordance with this Agreement.
2. Covered Claims. “Covered Claims” include all legally protected employment
related claims, excluding those set forth below in Sections 3 and 4 of this Agreement,
that the Employee now has or in the future may have against the Employer or its
officers, directors, shareholders, employees or agents which arise out of or relate to
the Employee’s employment or separation from employment with the Employer and
all legally protected employment-related claims that the Employer has or in the future
may have against the Employee, including, but not limited to:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Claims of employment discrimination or harassment, failure to pay wages, bonuses or other
compensation, tortious acts, breach of an express or implied contract, promissory estoppel, unjust
enrichment, etc.
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Employee Arbitration Agreement
This ​ E mployee Arbitration Agreement (hereinafter referred to as the “Agreement”)
is entered into as of _________________ by and between ______________________,
with a mailing address of ________________________________________________
(hereinafter referred to as the “Employer”) and ______________________, with a
mailing address of ______________________________________________________
(hereinafter referred to as the “Employee”), collectively referred to as the “Parties,”
both of whom agree to be bound by this Agreement.
The Employer believes that if a dispute related to the Employee’s current employment
arises, it is in the best interests of both the Employee and the Employer to resolve the
dispute without litigation. Most such disputes are resolved internally. When such
disputes are not resolved internally, the Employer provides for their resolution by
binding arbitration as described in this Agreement.
As a condition of and in consideration of the Employee’s employment with the
Employer or any of its direct or indirect subsidiaries, the Parties agree as follows:
1. Scope. ​ A ny and all “Covered Claims” (as defined below) between the Employee
and the Employer shall be submitted to and resolved by final and binding arbitration
in accordance with this Agreement.
2. Covered Claims. “Covered Claims” include all legally protected employment
related claims, excluding those set forth below in Sections 3 and 4 of this Agreement,
that the Employee now has or in the future may have against the Employer or its
officers, directors, shareholders, employees or agents which arise out of or relate to
the Employee’s employment or separation from employment with the Employer and
all legally protected employment-related claims that the Employer has or in the future
may have against the Employee, including, but not limited to:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Claims of employment discrimination or harassment, failure to pay wages, bonuses or other
compensation, tortious acts, breach of an express or implied contract, promissory estoppel, unjust
enrichment, etc.
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3. Excluded Claims. This Agreement does not cover, and the following claims are not
subject to arbitration under this Agreement:
❏ Any criminal complaint or proceeding;
❏ Any claims covered by state unemployment insurance, state or federal
disability insurance, and/or state workers’ compensation benefit laws, except
that claims for retaliation pursuant to these laws shall be subject to arbitration
under this Agreement;
❏ Any claim under the National Labor Relations Act;
❏ Claims for benefits under a plan that is governed by the Employee Retirement
Income Security Act of 1974.
Furthermore, this Agreement also does not cover the following:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
4. Class Action/Collective Action Waiver. All Covered Claims under this
Agreement must be submitted on an individual basis. No claims may be arbitrated on
a class or collective basis unless required by applicable law. The Parties expressly
waive any right with respect to any Covered Claims to submit, initiate, or participate
in a representative capacity or as a plaintiff, claimant or member in a class action,
collective action, or other representative or joint action, regardless of whether the
action is filed in arbitration or in court. Furthermore, if a court orders that a class,
collective, or other representative or joint action should proceed, in no event will such
action proceed in the arbitration forum, subject to applicable law.
Claims may not be joined or consolidated in arbitration with disputes brought by other
individual(s), unless agreed to in writing by the Parties or required by applicable law.
To the extent there is a question of enforceability of class or collective arbitration, it
shall be decided only by a court, not an arbitrator.
The Employee retains the right to challenge the validity of this Agreement upon
grounds that may exist at law or equity and will not be subject to any form of
retaliation for asserting such rights.
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5. Administrative Agencies. ​ T he employee understands that this Agreement does not
preclude them from filing an administrative claim or charge with the Equal
Employment Opportunity Commission (hereinafter referred to as “EEOC”) and/or
state and local human rights agencies to investigate alleged violations of laws
enforced by the EEOC or those agencies.
The Employee understands that they are not required to initiate an administrative
proceeding before pursuing a Covered Claim under this Agreement. In the event the
Employee files such an administrative proceeding, they understand that they cannot
pursue Covered Claims under this Agreement without first exhausting all required
administrative remedies, such as obtaining a right to sue notice from the EEOC in
order to arbitrate federal discrimination claims that require such a notice.
By responding to administrative agencies, the Employer does not waive their right to
enforce this Agreement and the arbitrator shall treat a decision of an administrative
agency in the same manner as it would be treated by a court of law.
6. Arbitration. ​ A rbitration under this Agreement shall be conducted before a single
neutral arbitrator of the American Arbitration Association (hereinafter referred to as
the “AAA”) (unless the Parties agree upon another mutually acceptable arbitrator, in
which case the arbitration will be conducted before such mutually acceptable
arbitrator) in accordance with and selected pursuant to the rules and procedures of the
Employment Arbitration Rules of the AAA (hereinafter referred to as the “AAA
Rules”) to the extent the AAA Rules do not conflict with the terms of this Agreement
or applicable law.
Where there is a conflict between this Agreement and the AAA Rules, this Agreement
will govern. Where there is a conflict between applicable law and the AAA rules
and/or this Agreement, the applicable law will govern.
To initiate arbitration, a Party must send a written demand for arbitration to any office
of the AAA (or if another mutually acceptable arbitrator has been agreed to by the
Parties, to the offices of such other arbitrator). The Party submitting the demand for
arbitration must also simultaneously send a copy of the written demand for arbitration
to the other Party.
If initiated by the Employee, the copy should be sent to the Employer at the following
address:
_____________________________________________________________________
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If initiated by the Employer, the copy should be sent to the Employee at the following
address:
_____________________________________________________________________
Both of the following must be included in the demand for arbitration:
1. A statement of the nature of the dispute, including the alleged act or omission
at issue, the names of the Parties involved, the amount in controversy, if any,
the remedy sought to resolve the issue (including the dollar amount, if any), the
mailing address for future correspondence and the legal counsel, if any.
2. Any required filing fee.
Any demand received by the AAA (or another mutually acceptable arbitrator agreed
to by the Parties) that is not accompanied by the required filing fee will be returned.
Nothing in this Agreement releases a Party from any obligation to comply with timely
filing requirements and statutes of limitations under applicable law, statutes, or
regulations.
The submission and timing of any response to an arbitration demand shall be in
accordance with AAA’s Rules, which currently provides that a response be filed
within 15 days after the date of the letter from the AAA (or other mutually agreed to
arbitrator) acknowledging receipt of the demand for arbitration.
8. Severability. ​ I f any part of this Agreement is held to be void or unenforceable, the
remainder of the Agreement will be enforceable and any part may be severed from the
remainder as appropriate, to the extent permitted by law.
9. Amendment or Termination of Agreement. ​ T he Employer reserves the right to
amend, modify, or discontinue this Agreement at any time in its sole discretion to the
extent permitted by applicable law. Amendment, modification, or discontinuation of
the Agreement will not affect pending arbitration proceedings. Continuation of the
Employee’s employment after receiving such amendments or modifications will be
considered as an acceptance of the amended terms.
10. Governing Law. ​ T his Agreement will be governed by the Federal Arbitration
Act, 9 U.S.C. § 1 et seq. The Parties agree that this Agreement shall be additionally
governed by the laws of ______________________​ .
State
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The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
EMPLOYER
EMPLOYEE
Name: _____________________
Name: _____________________
Signed: ____________________
Signed: ____________________
Date: ______________________
Date: ______________________
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