• Paul Peter Nicolai

Arbitration Notice Succeeds

Updated: Aug 13

A Plaintiff sued her employer saying it misclassified her as an independent contractor and failed to pay her minimum wages. The court dismissed the case and ordered it to arbitration because of an arbitration clause in the employment application. The court noted that the notice of the arbitration provision was displayed in bright blue, a color used to denote a hyperlink. It also required her to check a box indicating her acknowledgement of and agreement with the hyperlinked arbitration clause before allowing her to proceed to any subsequent screens in the application process. As a result, the employer satisfied its burden of showing she had reasonable notice of the mandatory mutual arbitration provision.

WHY THIS IS IMPORTANT…This is an example of how a properly noticed arbitration provision can be successfully used to manage litigation.

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