Continued Employment Sufficient Consideration for Rhode Island Arbitration Agreement

The United States District Court for the District of Rhode Island held that continued employment is sufficient consideration to enforce an arbitration agreement in Rhode Island.

Employee’s company was purchased by a new company. During the transition period, the new company required employee to sign an offer letter, arbitration agreement, and the company’s code of conduct as a required condition of continued employment.

In federal court found the arbitration agreement enforceable because it was supported by independent valid consideration, i.e., the employee’s continued employment. Specifically, the Rhode Island Supreme Court has held that continued employment is sufficient consideration to enforce an agreement; Puerto Rico law has held that continued employment suffices for consideration to enforce an arbitration agreement.

Britto v. St. Joseph Health Servs. of R.I., 2018 U.S. Dist. LEXIS 67629 (U.S. Dist. R.I., April 23, 2018)

 

 

 

 

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