Is it legal for my employer to demand I sign a arbitration agreement after I have been employed there for 2 years?

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Is it legal for my employer to demand I sign a arbitration agreement after I have been employed there for 2 years?

Asked on June 18, 2015 under Employment Labor Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Unless you already have a written employment contract protecting or guarantying your employment, it is legal. That is because without an employment contract, your employment is "employment at will"--that is, you can be fired at any time, for any reason. Therefore, no matter how long you have been there, your employer can require you to sign such an agreement or else face (even if they don't explicitly state this) termination (or anything short of termination: e.g. suspension, demotion, loss of hours, etc.). Thus, it is functionally and legally the same as if they required you to sign this as a condition of getting the job in the first place, since without an employment contract, you have no job security and every day could be your last, or may as well be your first.


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