Arbitration in New Jersey - Signature Required

Even under the Federal Arbitration Act, there must first be an agreement to arbitrate, and that agreement must conform with state contract law. Now, the New Jersey Supreme Court fills in one more requirement for employers seeking to require its employees to agree to arbitrate disputes as a condition of employment. In Leodori v. Cigna (N.J. 2/13/03) the Supreme Court held:

Although not strictly required, a party's signature to an agreement is the customary and perhaps surest indication of assent. Absent plaintiff's signature here, we cannot enforce the waiver provision unless we find some other unmistakable indication that the employee affirmatively had agreed to arbitrate his claims. Finding no such proof, we must hold for plaintiff.

The mere fact that he was aware that the company's policy was that all disputes should be arbitrated was not sufficient to show his agreement. This differs from the rule in Texas, where the Halliburton decision was just the opposite.