ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: RAGE DP 4-2-1-0 | 3rd Read 18-11-1-0

House: TI DPA 4-1-1-1

SB1514: employer-employee arbitration; contract; disputes

Sponsor: Senator Payne, LD 27

Caucus & COW

Overview

Allows for valid, enforceable and irrevocable arbitrated agreements to employment-related disputes between an employer and an employee as prescribed.

History

Arizona adopted the Uniform Arbitration Act (Act) in 1962 to govern an agreement to arbitrate.

Beginning January 1, 2011, the Act must not apply to an agreement to arbitrate any existing or subsequent controversy:

1) between an employer and employee or their respective representatives;

2) contained in a contract of insurance;

3) between a national banking association or a federal savings association or its affiliate, subsidiary or holding company and any customer; or

4) if the arbitration is conducted or administered by a self-regulatory organization as defined in the Securities Exchange Act of 1934 (15 U.S. Code section 78c), the Commodity Exchange Act (7 U.S. Code chapter 1) or regulations adopted under those acts (A.R.S. § 12-3003).

Current statute must not have application to arbitration agreements between employers and employees or their respective representatives (A.R.S. § 12-1517).

A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract (A.R.S. § 12-1501).

Provisions

1. Mandates a written agreement to arbitrate employment-related disputes between an employer and an employee, whose primary job duties directly and necessarily involve the loading, unloading or handling of goods at a warehouse leased or owned by the employer, as valid, enforceable and irrevocable, except when grounds exist at law or in equity to revoke the agreement. (Sec. 1)

Amendments:

Committee on Transportation & Infrastructure

1. Stipulates that regulation on employer and employee arbitration agreements does not diminish an employee's right to file a claim or charge with the civil rights division pertaining to discrimination.

2. Exempts from the employer and employee arbitration agreements an employee subjected to an enforceable collective bargaining agreement, except to the extent allowed in the bargaining agreement.

3. Makes a conforming change.

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7. SB 1514

8. Initials LM Page 0 Caucus & COW

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