8th Circuit: Arbitration Agreements Must Be Enforceable Contracts
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APPLIES TO All Employers with AR, IA, MN, MO, NE, ND, and SD Employees |
EFFECTIVE July 15, 2019 |
QUESTIONS? Contact HR On-Call |
In Shockley v. PrimeLending, the Eighth Circuit Court of Appeal reminded employers that arbitration agreements must be enforceable contracts. There, the employer’s mandatory arbitration agreement and delegation clause existed only in its Handbook Addendum. The employee had received the Addendum electronically, which only required her to click on the Addendum link to generate an automatic acknowledgement that it was reviewed. There was no evidence that the employee had actually ever opened the Handbook or Addendum and reviewed the arbitration policy.