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Offer of employment is sufficient consideration to support arbitration agreement.

October 1, 2018
D. M. v. Same Day Delivery Service, Inc., Docket No. A-2374-17T3 (App. Div. August 23, 2018)

On the day that the plaintiff was hired as a delivery person, she was instructed to log-on to the company’s website and complete various documents, including an agreement to arbitrate any employment-related claim in lieu of filing a court action. After being terminated, the plaintiff filed suit. In opposition to the employer’s motion to dismiss the complaint, she argued that the arbitration agreement was unenforceable since it was not supported by separate consideration. In rejecting the plaintiff’s argument, the Appellate Division held that an offer of continued employment is sufficient consideration to support an arbitration agreement. 

 

 

Case Law Alerts, 4th Quarter, October 2018

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