Agreement To Arbitrate Meaning In Texas
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FAQ
Arbitration agreements are a way that employers try to avoid being sued by employees for employment law violations, such as wage and hour violations or sexual harassment.
However, the Texas Supreme Court has ruled that an employer can simply notify at-will employees of the details of an arbitration program it is adopting, and the employees can be bound to that arbitration program by continuing their employment, even if they never sign anything.
Under Section 171.001 of the TAA, written agreements to arbitrate are generally valid and enforceable in Texas.
Yes. The Federal Arbitration Act, or FAA, was passed in 1925 in response to a variety of court decisions that held arbitration agreements unenforceable. This law provides that arbitration agreements are generally valid and enforceable.
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
Arbitration might be the right choice for some cases. Limited discovery rights and costs might be useful when less is at stake. Arbitration might feel less adversarial, which could be an advantage where ongoing relationships are hoped to be preserved. Arbitration lends some confidentiality.
At arbitration, the arbitrator will listen as the parties offer evidence about the issues. Witnesses will answer questions under oath, and each party will explain its side of the case. After the arbitration, the arbitrator will review the evidence and make a decision (enter an award) on each issue.
Contact the Texas Comptroller's Arbitration team at 800-252-9121 or ptad.arbitration@cpa.texas. You have certain rights under Government Code Chapters 552 and 559 to review, request and correct information we have on file about you. Contact us at the email address or phone number listed in these instructions.