SB1514

THE CONTEXT: 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.

WHAT THE BILL DID: The final vetoed version would mandate 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, stipulate 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, and exempt 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.

WHY IT MATTERED: The practical reason for this bill was to turn the Legislature's standard for employer-employee arbitration into an enforceable rule. It would mandate 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, and would also stipulate 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, rather than leave the current rule unchanged.