In any event, employers now have the option of arbitrating employment disputes but it requires advance planning. For employees who sign contracts of employment, arbitration provisions can be included directly in the contract to be signed by the employee and required as a condition of employment. For employers who want to require arbitration for large groups of employees or the entire workforce, there are additional options. In Circuit City , the arbitration provision was contained in an employment application. An increasing number of courts, including some New Jersey state and federal lower courts, have held that arbitration agreements contained in employment manuals are enforceable, under the appropriate circumstances.
Some companies also find it preferable to enact separate arbitration policies.
The courts have reasoned that an employee would otherwise be able to avoid the arbitration clause by suing an individual or other related entity in addition to the employer. See , e.g. , Bluemer v. Parkway Ins. Regardless of the form, it is important that employers consider what types of disputes they want the agreement to cover. Because such an agreement is considered a contract, courts will carefully examine it to determine whether the particular dispute is covered by the language. In the past, employees have often argued that compelling arbitration of statutory discrimination claims contravenes the policies of those statutes.