By Evan Lange
Many Texas employers require employees to sign arbitration agreements, and courts generally enforce them under the Federal Arbitration Act. That usually means employment claims, such as discrimination, wage or wrongful termination claims, go to a private arbitrator instead of a judge or jury, and class action waivers in those agreements are generally enforceable. But there are important limits: since March 3, 2022, a federal law lets employees choose to take sexual harassment and sexual assault claims to court even if they signed an arbitration agreement, and you can generally still file a charge with the EEOC or the Texas Workforce Commission. Whether your agreement is enforceable depends on its exact terms.
Arbitration clauses are often buried in onboarding paperwork, offer letters, handbooks or an “acknowledgment” you clicked on your first day. Most employees don’t realize they signed one until they have a problem. Here’s what an arbitration agreement does and doesn’t take away from Houston employees.
Your substantive rights, such as protection from discrimination, retaliation and unpaid wages, generally still apply in arbitration.
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, signed March 3, 2022, lets the person bringing a sexual harassment or sexual assault claim choose to void a pre-dispute arbitration agreement or class waiver and go to court. It applies to disputes that arise or accrue on or after that date, and a court, not an arbitrator, decides whether the law applies.
The law doesn’t cover other types of claims, like race or age discrimination. Learn more about sexual harassment claims in Texas and harassment at work.
An arbitration agreement generally doesn’t stop you from filing a charge of discrimination with the EEOC or the Texas Workforce Commission, or a wage claim with the TWC. The deadlines still apply: generally 180 days with the TWC or 300 days with the EEOC for discrimination. See filing an EEOC claim.
Arbitration clauses often sit next to non-competes and confidentiality terms. See non-compete agreements in Texas and non-disparagement clauses.
Generally yes. Courts usually enforce arbitration agreements under the Federal Arbitration Act, although agreements can be challenged if there was no valid agreement, the employer can change the terms on its own, or the terms are unconscionable.
Usually your claims must go to arbitration instead of court. An important exception: sexual harassment and sexual assault claims arising on or after March 3, 2022 can be taken to court at the employee’s choice.
Generally yes. An arbitration agreement does not prevent you from filing a charge of discrimination with the EEOC or the Texas Workforce Commission.
It is a clause requiring you to bring claims individually rather than as part of a group lawsuit. Courts generally enforce these waivers in employment arbitration agreements, except where the 2022 sexual harassment law applies.
An employer can generally require one as a condition of employment in Texas. Read it carefully and keep a copy.
The Lange Firm represents employees in Houston and across Texas. Attorney Evan Lange can review your agreement, whether it’s enforceable, and the best path for your discrimination, wage or wrongful termination claim.
Arbitration moves the courtroom.
It doesn’t remove your rights.
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