Online Notice of Arbitration Ineffective

An online job applicant filed a class-action suit, alleging that an employer unlawfully required information about arrests that did not result in criminal convictions during the application process. The employer moved to compel arbitration, but the motion was denied.

WHY THIS IS IMPORTANT… Most states require that, for an online arbitration clause to be effective, a person purportedly agreeing must have reasonable notice. Because this particular website did not provide an opportunity to review the arbitration provision, the plaintiff did not have reasonable notice, and the litigation could continue.