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ARTICLE · 03 JULY 2019

The Enforceability Of Employment Arbitration Agreements In Question

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Some employers include arbitration clauses in their standard form employment agreements as the arbitration process can be a confidential and cost-effective

CanadaEmployment and HR
Stefanie Di Francesco
Stefanie Di Francesco
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Some employers include arbitration clauses in their standard form employment agreements as the arbitration process can be a confidential and cost-effective method of resolving legal disputes with employees. However, the recent decision by the Ontario Superior Court of Justice in Rhinhart v. Legend 3D Canada Inc., 2019 ONSC 3296 (Rhinehart), calls into question the enforceability of arbitration clauses in employment agreements. As a result, employers who utilize such should review whether they wish to continue to do so given their limited value in employment relationships.

The Facts

Mr. Rhinehart is a US citizen who worked for Legend 3D Inc., an American company operating in California (Legend USA), from November 2012 until December 2016. During his employment with Legend USA, Mr. Rhinehart entered into several employment and arbitration agreements with Legend USA.

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