If your current or potential employer asks you to sign an arbitration agreement, you should consult an experienced employment law professional in New Jersey. Although there is no law or court decision, a recent decision by the New Jersey court, Cator v. WRDC Corp. (unpublished), upheld an employee`s right to refuse to sign a mandatory arbitration agreement. The court found that the employee`s dismissal because of the refusal to give up her right to appear under the NJLAD violated her rights under the Act. If you have been dismissed or have been subject to an unfavourable employment order because you refused to sign a mandatory arbitration agreement, you should consult a lawyer. The dismissal of an employee for the refusal to sign an arbitration agreement was challenged as an illegal dismissal in violation of public order, but years ago in Lagatree v. Luce, Forward, Hamilton -Scripps, the Court of Appeal decided that, because public order prefers arbitration, an employee can legitimately dismiss an employee for refusing to sign an arbitration agreement presented as a condition. However, this issue can take on practical significance if many workers refuse to sign the contract.
Some employers will not include the dismissal of such a worker and may create rights to discrimination if the employer selectively determines who is not signed to be laid off. (One possible way to refine such a potential dilemma is to issue a written arbitration program that will take effect without a signature.) Other problems may arise when the arbitration agreement involves ongoing litigation, which could allow a protesting staff member to argue that the new employment practice is intended to clean up retaliation. Because the arbitration agreement you sign only applies to you and your employer, you can take your employer to court for certain reasons. For example, if you feel that your employer has discriminated against you, you can go to the Equal Employment Commission (EEOC) and file a complaint. The EEOC may sue your employer on your behalf, as the arbitration agreement applies only to you, not to federal or regional authorities.