Fifth Circuit Rules Employer Can't Enforce An Arbitration Agreement It Failed To Sign

The U.S. Court of Appeals for the Fifth Circuit affirmed that an employer could not compel arbitration against its workers because the employer's representative failed to sign the agreement. This ruling serves as a reminder to employers: without the proper signatures, even well-drafted agreements may not be enforceable and preclude any benefits sought through arbitration.

In Mertens v. Benelux Corp., the dispute arose after several servers at a club in Austin, Texas, filed federal wage claims under the Fair Labor Standards Act. Although their employer distributed an arbitration agreement that required signatures from both the club and the employee, some employees filled out both signature boxes themselves, leaving the employer's signature absent.