No Signature, No Arbitration: Fifth Circuit Sends Strong Warning to Employers

In a decision that is likely to surprise many employers who have mandatory pre-dispute arbitration programs where they have obtained the unequivocal assent of their employees to arbitrate their disputes, a federal appeals court held that notwithstanding that assent, the failure of an employer to countersign the agreement where the arbitration contract specifically called for mutual signatures rendered the agreement unenforceable, and therefore permitted the case to proceed in court.... By: Seyfarth Shaw LLP