A New York federal district court held an agreement to arbitrate between an employee and employer valid and enforceable even though the employee did not sign the agreement.

In Brown v. The St. Paul Travelers Companies, No. 06-CV-688C(SC), 2008 WL 2331052 (W.D. N.Y. June 3, 2008), Brown was a Travelers employee. Travelers periodically issued an employee handbook to all employees, which included an agreement to arbitrate. Over the course of Brown's employment, the handbook was revised and reissued five times, with the most recent update in 2004.

Following the distribution of the 2004 handbook, an email was sent out advising employees that it was their responsibility to read and understand all of the company policies, including the arbitration agreement. The email also stated that agreement with the policies was an express condition of continuing employment.

Later in 2004, Travelers laid off Brown. Brown filed a complaint against Travelers alleging that she was illegally terminated based on her age. Travelers moved to compel arbitration pursuant to the agreement in the employee handbook. Brown claimed that she never signed an arbitration agreement and, accordingly, that the parties never agreed to arbitrate.

The Court noted several occasions where it has enforced employment arbitration agreements, signed and unsigned. Travelers' arbitration policy did not require a signed acknowledgement; nonetheless, it was a written policy, as required by the Federal Arbitration Act. Additionally, all employees received an email advising employees that it was their own responsibility to read and understand the policy.

Further, the email also stated that agreement with the policies was an express condition of continuing employment. The Court stated "when an arbitration policy is a condition of employment, an employee will be deemed to have accepted an arbitration agreement when she continues to work after the promulgation of the arbitration policy." Since Brown continued to work for Travelers, the Court concluded that the parties agreed to arbitrate. Accordingly, Travelers' motion to compel arbitration was granted.