TRENTON (LN) — The Appellate Division reversed a trial court’s denial of a motion to compel arbitration in an employment discrimination suit, ruling that an employee’s electronic signature on an onboarding agreement via the Workday software platform constituted a knowing and voluntary waiver of her right to a jury trial.
The panel held that the clickwrap agreement, which required the plaintiff to log in, scroll through the document, and click an "I agree" box to complete her hiring process, was enforceable under prevailing case law.
Julia Williamson sued AlerisLife, Inc. and its affiliates, alleging violations of the New Jersey Law Against Discrimination. The defendants moved to compel arbitration, arguing that Williamson had agreed to the terms as a condition of her employment.
The Law Division initially denied the motion. After limited discovery, defendants refiled the motion, and a second Law Division judge again denied it, stating in an oral ruling that he was "not convinced that the process that [plaintiff] went through that day demonstrates a knowing and voluntary agreement to go to arbitration."
The Appellate Division disagreed, conducting a de novo review of the arbitration clause’s enforceability. The court noted that New Jersey has a "long-standing policy favoring arbitration" but emphasized that enforcement requires "reasonable notice" and a "concrete manifestation of the employee's intent."
The opinion detailed the technical requirements of the Workday onboarding process. Prospective employees received an email with a temporary password and were instructed to create a unique, confidential password to access the system. The court noted that "no one could access a Workday account without entering the correct user ID and password" and that the employer could not view the password or sign in as the employee.
Once logged in, employees were notified of documents awaiting signature. The arbitration agreement was the first document distributed. To sign, employees had to download and review each document, then click a box next to "I agree" located below the signature statement.
"The clickwrap agreement at issue, which was specifically prioritized employee registration system, is enforceable under prevailing case law," the per curiam opinion stated.
The agreement contained bold-faced and capitalized warnings, including a statement that the agreement was a "legal document which... requires you to grieve, and then to arbitrate, all claims you may have now or." It also warned that failure to agree would result considering the employment application withdrawn.
Williamson argued she did not unequivocally agree to the arbitration clause and that the defendants failed to obtain her signature, attempting instead to "manufacture assent electronically." She suggested that someone else might have acknowledged the documents despite the security protections.
The Appellate Division held these assertions unsupported. An audit trail showed Williamson acknowledged the arbitration agreement on January 17, 2025, at 10:31:54. The court noted that her name, along with the specific date and time of her electronic signature, demonstrated her assent.
"Plaintiff has not presented any credible evidence to dispute defendants' assertion that her name, along with the specific date and time of her electronic signature, demonstrates her assent to the arbitration agreement," the court wrote.
The panel remanded the case to the Law Division solely to enter an order staying the litigation pending arbitration, noting that the agreement was governed by the Federal Arbitration Act.
The case was decided by Judges Currier and Jablonski.