Dallas Employment Lawyer Blog
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?
Forced arbitration means you agree—usually as a condition of employment—that if a legal dispute arises between you and your employer (like discrimination, harassment, unpaid wages, or wrongful termination), you’ll resolve it privately through arbitration, not in a public courtroom.
This process is handled by a private arbitrator (often chosen or influenced by the employer) instead of a judge or jury. These clauses often waive your right to sue, participate in a class action, or appeal the arbitrator’s decision.
Why do employers love arbitration clauses?
Because it typically benefits them—not you.
- Private, not public: Arbitration keeps disputes out of court, which means less public scrutiny and pressure.
- Fewer protections: The rules of evidence and procedure are more relaxed in arbitration, often to the employer’s advantage.
- Lower damages: Arbitration tends to result in smaller awards for employees—even when the arbitrator rules in their favor.
- No jury: You lose the chance to have your case heard by a jury of your peers.
What are you giving up?
When you agree to forced arbitration, here’s what you’re potentially sacrificing:
1. Your Right to a Jury Trial
One of the biggest things you’re giving up is the right to take your employer to court. A jury trial—especially in a discrimination or harassment case—can bring a sense of fairness and accountability. Arbitration, on the other hand, is private, and decisions are often final with limited chances to appeal, even if the arbitrator gets it wrong.
2. Transparency
Court cases are generally part of the public record. Arbitration is confidential, which means patterns of discrimination, harassment, or wage theft often stay hidden. That secrecy protects employers, not employees.
3. Class Actions
Arbitration clauses often include class action waivers, meaning you can’t join with coworkers to sue as a group—even if the company wronged all of you in the same way. This is a huge advantage for employers who want to avoid facing accountability for systemic issues like unpaid overtime or discriminatory practices.
4. Appeal Rights
In court, if the judge makes a mistake or your rights are violated, you can appeal. In arbitration? Not so much. The grounds to challenge an arbitration decision are extremely narrow, even if it’s unfair.
Is forced arbitration legal in Texas?
Unfortunately, yes—for now. Courts in Texas and across the U.S. have largely upheld arbitration agreements as binding, even when they’re signed without much explanation or true choice.
However, some changes are happening. In 2022, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act was signed into federal law. It gives employees the right to take sexual harassment or assault claims to court, even if they signed an arbitration agreement. But this protection is limited—and doesn’t apply to other kinds of employment claims (yet).
What if I already signed one?
Don’t panic. Just because you signed an arbitration agreement doesn’t mean all hope is lost. Sometimes:
- The agreement isn’t enforceable (it may be too vague or one-sided).
- The employer didn’t follow proper procedures.
- Your claim falls outside the scope of the arbitration clause.
- You may still be able to negotiate or challenge the clause with legal help.
The bottom line? Talk to a lawyer. An experienced employment attorney can review your contract and help you understand your rights.
What can you do?
- Read the fine print: Don’t rush through onboarding paperwork. Look for anything that mentions “binding arbitration,” “waiver of jury trial,” or “dispute resolution.”
- Ask questions: You have the right to ask HR or your manager about what you’re signing—though in Texas, refusing to sign may impact your job offer.
- Know your rights: If you believe your rights were violated at work, don’t assume you’re out of options just because of an arbitration clause. Legal protections still apply.
Final Thoughts: You Deserve a Fair Shot
Forced arbitration stacks the deck against workers—and most people don’t even realize they’ve agreed to it until it’s too late. At Rob Wiley P.C., we believe that every employee deserves a fair chance to hold their employer accountable, especially when workplace rights are violated.
If you’ve experienced discrimination, harassment, or retaliation—and you’re unsure whether your arbitration agreement is enforceable—contact our Dallas office today for a consultation. Let’s talk about your options and protect your rights together.
By: Cassidy Monska