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In the December 12, 2018 Law360 article, "Employee Arbitration Agreements in NJ Face New Hurdles," Benjamin S. Teris examines how New Jersey state courts have been less favorable to employers than federal courts when it comes to enforcing employee arbitration agreements. 

Specifically, Mr. Teris looks at the impact of the New Jersey Appellate Division's precedential decision in Flanzman v. Jenny Craig Inc. The decision invalidated an arbitration agreement for lack of mutual assent because it did not designate an arbitral forum (e.g. the American Arbitration Association or the Judicial Arbitration and Mediation Services) or otherwise provide a forum selection process. 

In discussing the impact of Flanzman, Mr. Teris notes:

"Flanzman is consistent with the trend of New Jersey cases...to impose escalating requirements on arbitration agreements. In so doing, New Jersey courts are seemingly subjecting the arbitration agreements to greater scrutiny than other contracts. 

Existing arbitration agreements between New Jersey employers and their employees that do not designate or provide a method for selecting an arbitral forum or setting are now invalid. Although the Supreme Court of New Jersey could theoretically overturn Flanzman, employers should not count on it."

Click here for the full article.

 

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