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Agreement to Arbitrate Employment Claims

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Agreement to Arbitrate Employment Claims Between Employer and At-Will Employee

This Arbitration Agreement is made this the date between

, a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Company, and of , referred to herein as Employee.

For and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Any dispute, controversy or claim arising out of or in relation to Employee's employment with Company or regarding the termination of employment (with the exception of claims for workers' compensation, unemployment insurance and any other matter within the jurisdiction of a state labor commissioner or an equivalent state official), shall be settled by binding arbitration in accordance with the rules and procedures promulgated by the American Arbitration Association.

2. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction.

3. The arbitration proceeding shall be held at a location mutually convenient to Employee and Company.

4. Civil discovery shall be permitted for production of documents and the taking of depositions. All discovery shall be governed by the Rules of Civil Procedure. All issues regarding compliance with discovery requests shall be decided by an arbitrator in accordance with the rules of the American Arbitration Association.

5. The arbitrator shall have the authority to award any remedy or relief that a court could order or grant, including but not limited to specific performance, a payment of damages, issuance of injunction, or the imposition of sanctions for abuse or frustration of the arbitration process.

6. This Agreement does not shorten time limits under which Employee may bring a claim to arbitration. The time limits under which a dispute, claim or controversy may be brought to arbitration will be governed by the applicable statutes of limitations as set forth in the Code of Civil Procedure.

7. Following a hearing conducted by the arbitrator, the arbitrator shall issue a written opinion and award that shall be signed and dated. The opinion and award shall decide all issues submitted and shall set forth the legal principles and findings of fact supporting each part of the opinion. The arbitrator shall be permitted to award only those remedies in law or equity which are requested by the parties and which the arbitrator determines to be supported by credible, relevant evidence.

8. Employee and Company agree that arbitration in accordance with the rules of the American Arbitration Association shall be the exclusive forum for resolving all disputes arising out of or involving Employee's employment with Company or the termination of that employment (with the exception of claims for workers' compensation, unemployment insurance and any matter within the jurisdiction of the state labor commissioner or equivalent state official). All arbitration awards shall be binding upon the parties to this Agreement.

9. All fees and costs associated with the retention of the arbitrator (including the fees charged by the arbitrator) shall be borne by Company. However, each party shall bear the expense of its own counsel, experts, witnesses and the preparation and presentation of evidence.

10. Nothing in this Agreement shall be construed as precluding any employee from filing a charge or complaint with the Equal Employment Opportunity Commission (EEOC), the National Labor Relations Board (NLRB) or any other similar state or federal agency seeking administrative resolution of a dispute or claim. However, any claim that cannot be resolved administratively through such an agency shall be subject to this arbitration policy.

11. Nothing contained in this agreement shall be deemed to alter or modify the Company's policy of at-will employment. Employment at the Company is at-will and can be terminated by either Employee or Company at any time, with or without cause or notice.

12. Employee and Company agree that this Arbitration Agreement shall survive the termination of Employee's employment with Company. Employee certifies that he is aware that by entering into this Agreement, he is waiving his right to have his claims against Company, if any, tried before a jury. Employee further certifies that he has had the opportunity to consult with legal counsel prior to executing this Arbitration Agreement.

13. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

14. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

15. Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

16. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

By:

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What an Agreement to Arbitrate Employment Claims Is and when it applies

An Agreement to Arbitrate Employment Claims is a contractual clause or standalone document where an employer and employee agree to resolve workplace disputes through arbitration rather than through court litigation. Typical covered matters include discrimination, wage-and-hour claims, wrongful termination, and tort or contract disputes arising from employment. The agreement may define scope, the arbitration provider and rules, procedural detail for filing, and any limitations on remedies or classwide procedures. Enforceability depends on federal and state law, statutory exceptions, and whether the parties provided adequate notice and consent.

Why employers and employees use arbitration agreements

Arbitration agreements can provide a defined forum, predictable procedures, and faster resolution than some court cases, while lowering discovery costs and reducing public litigation. They do not eliminate legal rights; courts review enforceability and statutory protections still apply. Electronic execution is valid under ESIGN and UETA when intent, consent, attribution, and record retention requirements are met.

Why employers and employees use arbitration agreements

Who typically prepares and signs these agreements

Both parties should ensure the agreement is clear, signed by authorized representatives, and presented with any required disclosures so the record shows informed consent.

  • Human resources teams and HR generalists who manage onboarding and policy distribution.
  • In-house or outside employment counsel who tailor clauses to state law and litigation exposure.
  • Individual employees or new hires asked to acknowledge policy terms during onboarding.

Key components to include in a professional arbitration agreement

A thorough Agreement to Arbitrate Employment Claims should clearly define scope, procedures, and logistics so enforcement and expectations are consistent.

Arbitration Clause

A precise statement that disputes will be resolved by arbitration, detailing which claims are covered and any express exclusions such as workers' compensation or statutory claims that cannot be waived.

Scope of Claims

Define whether the clause covers all employment-related claims (statutory, tort, contract) and specify temporal reach, e.g., claims arising during or after employment.

Provider and Rules

Name the arbitration provider (AAA, JAMS, or ad hoc) and the rules that govern procedures, briefing, discovery, and appointment of the arbitrator.

Class Action Waiver

State whether class, collective, or representative actions are waived and clarify whether group claims must proceed individually; be mindful of state law limitations.

Fees and Costs

Allocate responsibility for filing fees, arbitrator costs, and attorney fees; include fee-shifting, employer reimbursement, or hardship procedures if applicable.

Remedies and Severability

Specify available remedies, limitations on damages, and a severability clause to preserve enforceability if any provision is found invalid.

Required fields and essential document data

Employee Name: Full legal name
Employer Name: Legal entity name
Effective Date: MM/DD/YYYY
Position/Status: Job title or employment status
Consideration: Specify any promise or benefit
Signature Block: Signed and dated

Step-by-step: completing the arbitration agreement

Follow a consistent sequence to prepare, present, and record the agreement to minimize enforceability risk.

  • 01
    Draft or select: Use counsel-reviewed language tailored for the jurisdiction.
  • 02
    Set terms: Specify scope, provider, fees, and governing law.
  • 03
    Present clearly: Provide employee with disclosure and opportunity to ask questions.
  • 04
    Execute and retain: Collect signatures and preserve an unalterable audit trail.

How to configure an online arbitration agreement workflow

Configure signer authentication, ordering, and retention to create a clear electronic record that supports enforceability.

Field Configuration
Signer Authentication Email link | SMS code | ID verification
Signing Order Sequential or parallel signing
Template Reuse Save as template for onboarding
Audit Trail Capture IP, timestamp, and attachments

Digital signing and platform compatibility

Ensure the solution you use can export a tamper-evident PDF and store a searchable audit trail for future disputes or compliance reviews.

  • File Formats: PDF, DOCX supported
  • Integrations: HRIS, ATS, and cloud storage
  • Security: TLS and AES-256 encryption

Where to send or file the completed agreement

After signatures, route copies to designated parties and retain the original electronic record with audit data.

  • Employee Copy: Send signed PDF to the employee's email
  • HR Record: Store in the employee's personnel file
  • Legal/Retention: Retain with legal documents repository
  • Arbitration Provider: Keep provider contact and rules on file

Typical timelines and timing considerations

Timing affects enforceability and rights; present the agreement early and preserve evidence of acceptance.

Presentation Timing:

Provide before or at the start of employment

Acknowledgment Window:

Require prompt acknowledgement to document consent

Filing Timeline:

Arbitration filing deadlines follow the underlying claim statute

Retention Requirement:

Keep signed records for the term plus applicable retention period

Challenge Periods:

Employees may challenge enforceability promptly in court

Common mistakes to avoid when preparing the agreement

  • Failing to provide clear notice or a separate explanation of rights can lead courts to find the agreement unconscionable or procedurally unfair.
  • Using ambiguous scope language that does not explicitly list covered claims increases the risk that an arbitrator or court will find gaps in coverage.
  • Not tailoring fee-shifting, cost-sharing, or hardship language can deter employees from pursuing claims and invite judicial scrutiny.
  • Presenting the agreement as a take-it-or-leave-it condition without opportunity to review or seek counsel can weaken enforceability arguments.

Risks and legal consequences of an incorrect or missing agreement

Unenforceability: Agreement may be voided
Increased Litigation: Case proceeds in court
Class Action Exposure: Waiver may be invalidated
Regulatory Scrutiny: Agency challenges possible
Reputational Risk: Employee relations harm
Cost Uncertainty: Unexpected arbitration fees

Vendor pricing snapshot for eSignature options (signNow shown first)

Compare starting prices and core capabilities relevant to electronically executing and storing arbitration agreements; vendor plans and terms vary by billing and feature tier.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-world examples of electronic arbitration agreement workflows

Organizations use eSignature to distribute and record arbitration agreements at scale while keeping an auditable consent record.

Optica Ventures — COO Brian Fitzgibbons

The firm standardized onboarding with online agreements to reduce processing time and errors.

  • Electronic execution streamlined acknowledgments across locations.
  • As a result, HR retained a consistent audit trail and reduced manual follow-up while preserving clear proof of employee consent and execution dates.

Tech Data — CEO Bob Dutkowsky

Tech Data integrated eSignature into their offer-letter workflow for faster acceptance tracking.

  • Automated routing ensured legal review before finalization.
  • This integration improved internal controls, made dispute evidence easier to retrieve, and supported compliance with record retention policies.

Practical tips for accurate and efficient completion

Adopt repeatable processes and verification steps to reduce disputes about consent and to preserve enforceability.

Provide clear disclosure language
Include a short, plain-language explanation of the arbitration agreement and any waiver of class actions so the signer understands the effect before consenting.
Use robust signer authentication
Apply multi-factor or SMS verification for remote signers, especially when onboarding high-risk roles or where identity disputes are likely.
Record the audit trail
Retain timestamps, IP addresses, and consent logs in the same record as the signed PDF so you can reproduce the execution history if challenged.
Offer review time and counsel
Where practical, give employees reasonable time to review and access to counsel or HR to reduce claims of coercion or lack of informed consent.

Who may sign on behalf of the employer and employee

HR Director

An HR director or authorized HR representative commonly executes or countersigns arbitration agreements on behalf of the employer; their signature should be within delegated authority and tied to a documented approval policy.

Authorized Employee

The employee or authorized representative must sign using their legal name; if signing on behalf of a minor or representative, include capacity and proof of authority.

Frequently asked questions about arbitration agreements and electronic execution

Answers address common enforceability, execution, and recordkeeping questions specific to Agreements to Arbitrate Employment Claims.


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