Jackson Lewis: Nevada Arbitration Clauses May Need Affirmative Agreement | Practical Law

Jackson Lewis: Nevada Arbitration Clauses May Need Affirmative Agreement | Practical Law

This Law Firm Publication by Jackson Lewis, P.C. discusses a recent amendment to the Nevada state law governing the enforcement of arbitration agreements (Nev. Rev. Stat. § 597.995(1), (2) (2013)). Under the new law, all agreements containing an arbitration clause, except for collective bargaining agreements, must include a specific authorization indicating that the person has affirmatively agreed to the provision, and any arbitration clause that fails to include an authorization is void and unenforceable. The Federal Arbitration Act (FAA) arguably preempts this law, and it is unclear whether courts would apply it retroactively. However, employers should consider modifying their agreements to comply with the law.

Jackson Lewis: Nevada Arbitration Clauses May Need Affirmative Agreement

Practical Law Legal Update 2-563-8305 (Approx. 4 pages)

Jackson Lewis: Nevada Arbitration Clauses May Need Affirmative Agreement

by Jackson Lewis, P.C.
Published on 02 Apr 2014Nevada, United States
This Law Firm Publication by Jackson Lewis, P.C. discusses a recent amendment to the Nevada state law governing the enforcement of arbitration agreements (Nev. Rev. Stat. § 597.995(1), (2) (2013)). Under the new law, all agreements containing an arbitration clause, except for collective bargaining agreements, must include a specific authorization indicating that the person has affirmatively agreed to the provision, and any arbitration clause that fails to include an authorization is void and unenforceable. The Federal Arbitration Act (FAA) arguably preempts this law, and it is unclear whether courts would apply it retroactively. However, employers should consider modifying their agreements to comply with the law.