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Stipulating to Arbitration in U.S. Crew Employment Contracts: FAQs This article considers the enforceability of arbitration clauses within U.S. crew employment contracts, the statutory and common law principles applicable, and the benefits of arbitration. Articles Owen Mearing Published: July 21, 2025 Contact author Download article pdf Key Navigation Does the Federal Arbitration Act allow for arbitration of U.S. crew claims? Does this mean that an employer cannot require U.S. crewmembers to arbitrate claims via a clause within the employment contract? What things need to be considered when drafting arbitration agreements in employment contracts? Which States are generally favourable to arbitration? What arguments do we generally see progressed against the enforcement of arbitration? What are the benefits to employers / shipowners to arbitrate, rather than litigate, claims? Does the Federal Arbitration Act allow for arbitration of U.S. crew claims? The Federal Arbitration Act (“FAA”) was enacted in 1925 to congressionally overcome the historical, hostile approach taken by common law courts in refusing to order parties to arbitrate, despite the same being provided for by express agreement. The FAA applies to maritime transactions as outlined within section 1. Section 2 provides that: “ A written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract ” (9 USC. § 2.). However, shipowners should note that section 1 contains an express carveout whereby: “ nothing herein contained shall apply to c
Stipulating to Arbitration in U.S. Crew Employment Contracts: FAQs
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