Employers frequently include arbitration provisions in order to avoid the costs and time of litigation that can result from claims that arise from an employment relationship.  In the courts, arbitration clauses are frequently enforced due to the liberal federal policy favoring arbitration agreements, and it helps them clear their dockets, which are already overloaded with cases.  But what happens when an employee forgets that they’ve signed an agreement to arbitrate, and has doubts they signed the agreement?  In the case of Ashton v. Menards, Inc., we found out.

Ashton was an employee of Menards, and at the start of her employment, she was provided an employee agreement.  Ashton went over the agreement with a human resources coordinator, and was given as much time as she needed to review the document.  The agreement included an arbitration provision that stated:

I agree that all problems, claims and disputes experienced related to my employment area shall first be resolved as outlined in the Team Member Relations section of the “Grow With Menards Team Member Information Booklet” which I have received. If I am unable to resolve the dispute by these means for any reason, I agree to submit to final and binding arbitration. Arbitration shall be the sole and exclusive forum and remedy for all covered disputes of either Menard, INC or me… Problems, claims or disputes subject to binding arbitration include, but are not limited to: statutory claims under 42 U.S.C. §§ 19811988: Age Discrimination in Employment Act of 1967; Older Workers’ Benefit Protection Act (“OWPBA”); Fair Labor Standards Act: Title VII of the Civil Rights Act of 1964; Title I of the Civil Rights Act of 1991; Americans with Disabilities Act; Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”); Family Medical Leave Act; and non-statutory claims such as contractual claims, quasi-contractual claims, tort claims and any and all causes of action arising under state or common law.

(Emphasis in original). The Menards human resources representative provided a sworn statement that Ashton read and signed the agreement in front of her.

In 2023, Ashton filed a complaint alleging harassment and wrongful discharge on the basis of age, sex, and in retaliation for whistleblowing activity.  Upon receipt of her complaint, Menard’s made a demand that Ashton submit to arbitration, to which Ashton did not respond.  Once the case moved to the courts, Menard’s moved to stay the action and compel arbitration.

In making its decision, the Eighth Circuit district court noted the federal doctrine of favoring arbitration agreements, and that in reviewing whether a claim is arbitrable, a court’s role is limited to determining whether a valid agreement to arbitrate exists and whether the agreement encompasses the dispute.

Finding that Ashton’s claims all were the result of her employment with Menard’s, the court moved to the question of whether the agreement was valid.  Ashton argued that she did not remember signing the agreement, and that the signature on the agreement did “not entirely match her signature.”  The court held that such assertions, without additional information, did not create a genuine dispute of fact in the face of a sworn statement to the contrary (and the fact that the human resources representative also signed the agreement).  The case was then sent to be resolved at arbitration.

A broad, but well-tailored arbitration agreement can save an employer a lot of time, effort, and money when resolving employee disputes.  If you, or your organization, need assistance in drafting arbitration agreements, or enforcing them, contact Wiley Reber Law, for legal advice that works.