Dallas Employment Trial Lawyer Cassidy Monska
If you’ve started a new job recently in Texas—especially in a corporate or professional setting—there’s a good chance you were asked to sign an employment contract with a clause about arbitration. Maybe it was buried in a stack of onboarding documents, or maybe it was part of your offer letter. Either way, what may seem like just another HR form could have a major impact on your rights.
So, what is forced arbitration?
On March 3, 2022, President Joe Biden signed into law new legislation banning the use of arbitration clauses in employment contracts that force victims of sexual assault and harassment to pursue their claims in private arbitration rather than in open court. The legislation passed Congress with bipartisan support and has been described as one of the most significant workplace reforms in history. It is estimated that about 60 million Americans are subject to arbitration clauses.
The law allows victims of sexual assault and harassment to have their day in court and to speak publicly about their cases. Until now, victims who had signed an arbitration agreement with their employers were forced to bring their claims in a private and largely employer-friendly arbitration process, where cases are typically decided by a single arbitrator instead of a jury.
So, one day your employer asks you to sign a piece of paper that talks about a “dispute resolution” program, including “arbitration.” Perhaps you instead got paperwork talking about arbitration with your onboarding materials when you started a new job. Or, maybe you just got an email from your employer saying you are now subject to arbitration “as a condition of employment.” This article takes a basic look at what these things mean and why seeing them ought to—at the very least—cause you to sit up and think about what your next move should be.
Arbitration is basically a private court. The parties (including employees and employers) agree beforehand to submit disputes to a private decisionmaker or decisionmakers to reach a final, binding decision. Some arbitration programs require the parties to select an arbitrator or arbitrators from a list of candidates associated with a large dispute resolution company like the American Arbitration Association, and might apply rules set by that company. There is no judge or jury, and the ultimate decision may be kept secret. Appealing an arbitrator’s decision can be almost impossible, and the rules of an arbitration may be quite different than those in a court. As a result, employees may have less of an ability to get evidence from their employer. Continue reading ›
Dallas Employment Lawyer Blog