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Managing the Modern Workplace
V&E International Labor & Employment Resources

  • 18
  • October
  • 2016

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Arbitration Delegation Clauses: Be Careful What You Wish For

Most of the time, employers that draft and enforce arbitration agreements want to send their disputes with an employee to arbitration. To ensure that all disputes are covered, agreements often use broad language, such as requiring the arbitration of “any or all” disputes, those “regarding the interpretation, applicability and enforceability of the agreement” or “the arbitrability of any dispute.” In two recent decisions [Reyna v. Int’l Bank of Commerce, No. 16-40057 (Oct. 4, 2016); Kubala v. Supreme Prod. Servs., July 20, 2016], the Fifth Circuit has made clear that these provisions, called delegation clauses, transfer the power to decide threshold questions of arbitrability to the arbitrator.

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Contributors

Thomas H. Wilson

Thomas H. Wilson Partner

Christopher V. Bacon

Christopher V. Bacon Counsel

Sean Becker

Sean Becker Partner

Stephen M. Jacobson

Stephen M. Jacobson Partner

Martin C. Luff

Martin Luff Counsel

Lawrence S. Elbaum Partner

S. Grace Ho

S. Grace Ho Counsel

Robert Sheppard

Robert Sheppard Associate