Fifth Circuit Addresses Enforceability of Arbitration Clauses in ERISA Plans

A recent case in the United States Court of Appeals for the Fifth Circuit reminds plan sponsors that adding arbitration clauses in their ERISA plans retroactively may be problematic. Specifically, in Parrott v. Int’l Bancshares Corp, the plan sponsor added a retroactive arbitration clause after the plaintiff had terminated employment.... By: Haynes Boone