On March 3, 2022, the President signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“Act”). The new law amends the Federal Arbitration Act to prohibit the enforceability of mandatory, predispute arbitration agreements and class action waivers of sexual assault and sexual harassment disputes. The passage of the law comes
Federal Arbitration Act
Expect a Showdown at the Supreme Court over Class Action Waivers in the Employment Context
Arbitration agreements containing class action waivers can be an effective way for employers to mitigate risk against defending large scale mass actions filed by employees. And in the Fifth Circuit, the federal Court of Appeals covering Texas, and three other federal circuits, individual arbitration agreement containing class-action waivers are enforceable.
In a recent Seventh Circuit…
Fifth Circuit Refuses to Enforce Illusory Handbook Arbitration Provision
It’s a rare day when a Texas state court or federal court sitting in Texas refuses to enforce an arbitration agreement. The Texas law is well-developed on this issue and the table is heavily tilted in favor of arbitration. Consequently, most employer arbitration programs in Texas are enforced. However, a recent opinion from the Fifth…
Fifth Circuit Rejects Argument that Class Action Waivers in Arbitration Agreements Violate the NLRA
I first wrote about the NLRB’s decision that pre-dispute arbitration agreements waiving the right to assert claims as part of a class action violated federal labor law in January 2012 (post). Back then, I thought it was prudent for employers to wait for the result of the the inevitable appeal that would follow before…
Court Strikes Employer’s Arbitration Agreement With Employee For Lack of Consideration
There are a few pockets in the state where lawyers representing employees still vigorously fight the arbitration agreements their clients signed with employers agreeing to arbitrate all disputes. One of the pockets is in El Paso, Texas as evidenced by the number of opinions out of the court of appeals addressing the enforceability of an arbitration…