Nevada Employment Arbitration Agreements

With the passage of Assembly Bill 326 at the last Nevada legislative session, it will be a requirement from October 1, 2013 that any agreement containing an arbitration clause should allow employers to review their arbitration agreements with lawyers to determine whether they need to be reviewed in order to comply with the new law. One of the common ways in which employers attempt to implement a mandatory arbitration program is an arbitration agreement contained in a staff manual. However, several courts have recently found that some arbitration agreements contained in employee manuals are unenforceable. The courts have argued that, although agreements are favoured under the law, arbitration agreements are, by their nature, always contracts and must follow the principles of the common contract formation law. MMAWC d/b/a World Series of Fighting, et al v Zion Wood Obi Wan Trust, et al, 135 Nev. Ad. The op. 38 (2019) involved a dispute over the applicability of a compromise clause in a licensing agreement. The case began as a complex dispute between many parties involved in professional mixed martial arts and resulted in a comprehensive agreement.

A key clause in the agreement was an amended licensing agreement that contained a newly added compromise clause: thus, the court raises the question while telling you the answer: the federal law prejudges any state right that treats arbitration agreements differently from other agreements. Nevada`s status treats arbitration agreements differently by requiring a special language before being applied. The statutes are therefore anticipated. That is the fundamental application of the right to the thing. Under the new law, arbitration provisions in agreements that do not have this specific authorization are “null and void.” This means that the arbitration provision will not be respected and an employer will not be able to force arbitration. Nora Valenza-Frost represents U.S. and international insurers and reinsurers in arbitration proceedings and litigation with complex damage, hedging and regulatory issues in all industries. A mandatory arbitration clause is a provision in a contract that stipulates that all disputes between the parties to the contract are settled by the arbitration procedure.

This entry was posted in Uncategorized. Bookmark the permalink. Comments are closed, but you can leave a trackback: Trackback URL.