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Arbitration - Part 1

A federal appeals court ruled that an employer could dismiss employees who refused to agree to a new “mandatory arbitration” policy.

Key point 10-16.8. Churches have various defenses available to them if they are sued as a result of a personal injury. One such defense is an arbitration policy. By adopting an arbitration policy, a church can compel members to arbitrate specified disputes with their church rather than pursue their claim in the civil courts.
Negligence as a Basis for Liability

* A federal appeals court ruled that an employer could dismiss employees who refused to agree to a new "mandatory arbitration" policy in an employment handbook that required all employment related disputes to be resolved by arbitration. A company issued a new employee handbook to its employees. The handbook included an arbitration provision that required all claims by employees arising out of their employment to be resolved through arbitration. The arbitration provision specified:

The company and I each agree and understand that ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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  • July 1, 2003

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