Many employers ask employees to sign arbitration agreements, in which they give up their right to sue in court over jobrelated issues. The US District Court for the Southern District of New York (SDNY) ruled that an employer's mandatory arbitration program was unenforceable.In these agreements, the employer and employee agree to resolve any employment-related dispute through a binding arbitration as opposed to a jury trial. The employer tried to force the Labor Department into arbitration because of the clauses they put into their workers' contracts. But does that mean that the employer must agree to arbitrate any and all disputes with its employee? Nothing in the FAA suggests that it does. The majority of US employers now require new employees to sign a mandatory agreement to arbitrate any significant disputes that arise between them. Sample Clause for Employment Mediation and Arbitration. In order to enforce an agreement to arbitrate, therefore, the employer must prove that a valid contract to arbitrate was created. Arbitration agreements can come in many forms.