Many people sign new-hire paperwork without reading every document. A mandatory workplace arbitration agreement may be part of that paperwork. If you sign one, it can affect how you resolve a workplace dispute later. Understanding the agreement before you sign can help you make informed choices.
What is a mandatory arbitration agreement?
A mandatory arbitration agreement requires employees and employers to resolve certain workplace disputes through arbitration instead of a court case. In arbitration, a neutral arbitrator listens to both sides, reviews the evidence and makes a decision.
Federal law generally allows employers to use arbitration agreements that meet legal requirements. Still, an agreement may not cover every type of workplace claim. Read the document to see which disputes it includes. Knowing what the agreement covers can help you avoid surprises if a problem arises.
What should you review before signing?
Read the entire agreement before you sign it. Pay close attention to:
- The types of workplace disputes covered
- Whether the agreement applies to future claims
- How the parties choose the arbitrator
- Who pays the arbitration costs
- The limited situations where a court may review the decision
Texas courts may decide whether an arbitration agreement meets legal requirements before requiring arbitration. Reading the agreement carefully can help you understand how the process works if a dispute develops.
Your workplace rights still apply
An arbitration agreement does not take away your workplace rights. Federal and Texas laws continue to protect employees from discrimination, retaliation and other unlawful employment practices. The agreement changes where many disputes are resolved, but it does not remove the legal protections available to employees.
A mandatory workplace arbitration agreement can have a lasting effect on your employment. Taking time to read and understand the document can help you know what to expect if a workplace dispute arises. If you have questions about the agreement, consider speaking with a legal professional before you sign.