The Federal Arbitration Act (FAA) generally states that a written clause can be added to a contract to require both parties to settle their differences, in the event of a dispute, through the use of Arbitration. Since this law was instituted, many companies have incorporated such clauses into their employment paperwork, which employees are expected to sign prior to the start of their official employment.
Although there have been minimal instances that this concept has been brought to question in formal, legal settings, the question remains in how this federal act impacts workers compensation and an employees right to seek compensation in a state forum if they signed such paperwork as a condition of employment. Depending on the specifics, an argument exists that if the employee signed paperwork that included such a clause that they have waived their right to seek workers compensation benefits through the judicial system, and must allow the dispute to be decided by an arbitrator.
In some states, however, the FAA has been interpreted on a very broad level and some cases show evidence that the act essentially states that no agreement, including release of damages, shall be valid if it was signed before the date of injury or illness. Also, as long as the date of signature precedes the date of injury, the FAA does not disallow an employees claim for damages.
Based on this information, it appears that the FAA does not hold sway over an employees rights in relation to workers compensation simply by signing an employment contract. With that said, a note of caution, the question is still an open, valid question with no clear resolution to date. Since the FAA is a federal law, it is possible that it might supersede any state law regarding workers compensation. In such case, the employee would be forced to have the case go through arbitration. In addition, if the question is presented to the judicial system, the decision could potentially be different from state to state.
