Employment arbitration agreements provide employers and employees with a fair and efficient way to resolve disputes outside of court litigation. The legal requirements for and best practices surrounding employment arbitration constantly develop. Heading into 2026, employers who use employment arbitration agreements or are considering adopting such agreements should take note of these emerging issues and trends.
Quick Hits
The Federal Arbitration Act (FAA) promotes the use of arbitration agreements, preempts state anti-arbitration laws, and requires federal and state courts to place arbitration agreements on the same footing as other contracts. Several issues and trends—from the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) to plaintiffs’ attorneys’ contesting the enforceability of arbitration agreements—affect best practices for enforceable employment arbitration agreements.
Plaintiffs’ counsel continue to search for new ways to challenge the enforceability of arbitration agreements and class action waivers. In some states,...
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