Can companies require arbitration agreements?

[Jeff]

I live in New Jersey, and up until now, my experience with arbitration was limited to watching "The People's Court". I am being recruited by a California company, and they require as a term of employment that I sign an arbitration agreement and surrender my right to sue in a court of law. This is a major corporation and I am sure there lawyers are aware of this policy. How can this be? I thought that constitutional rights such as the right to sue (seventh amendment) were the highest law of the land and that no one could be required to surrender such rights. Is this legal?

- J

 

[Attorney_Replogle]

CA law allows, with some exceptions, employers to require potential employees to contract away the right to sue by arbitrating disputes. This is more commonly done with union employees but private companies are requiring this more often.

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Mark B. Replogle