From Lexology, Frederick (Rick) L. Warren offers guidance on drafting arbitration agreements to avoid claims of unconscionability. Rick writes:
Although the test of unconscionability varies from state to state, lessons can be drawn from this case about how to draft and implement an arbitration agreement:
- The agreement should be drafted in simple, understandable English, plus other languages as needed.
- Employees should be given a period of time to read the agreement and an opportunity to ask questions before signing.
- Employees should be provided a copy of the agreement.
- Make the process clear, including but not limited to, the allocation of arbitration costs and how to initiate the arbitration process.
- The agreement should be a legible, stand-alone document, double-spaced, and prominently advise employees of waivers of their rights.
Read the full story at US – Lessons in drafting and implementing an enforceable mandatory arbitration agreement – Lexology