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Arbitration agreement tips for PA employers from the 3rd Circuit
Early in my legal career, a colleague taught me the expression: pigs get fed; hogs get slaughtered. Essentially, be agressive. But push too hard, and you may lose it all.
Some PA companies require their new hires to sign an agreement requiring them to arbitrate any claims that arise out of the employment relationship. The U.S. Supreme Court has held that agreements requiring employees to arbitrate employment-related claims are ok. However, in Pennsylvania (as in other states), when those agreements are too one-sided, courts deem them unconscionable and, therefore, unenforceable.
So remember, pigs get fed; hogs get slaughtered. And thanks to a decision the Third Circuit Court of Appeals handed down yesterday, PA employers now have a better blueprint as to how to avoid unconscionable arbitration agreements. Details after the jump…
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The Employer Handbook Blog




