Can I require employees to sign arbitration agreements in Texas? What are the requirements?

Yes, you can require employees to sign arbitration agreements in Texas. However, there are certain requirements that must be met for the agreement to be valid and enforceable.

Requirements for Valid Arbitration Agreements in Texas

According to Tex. Civ. Prac. & Rem. Section 172.032, an arbitration agreement must meet the following requirements:

1. The agreement must be in writing.
2. The agreement must be signed by each party or contained in an exchange of letters, telexes, telegrams, or other means of telecommunication that provide a record of the agreement.
3. A contract reference to a document containing an arbitration clause is an arbitration agreement if the contract is in writing and the reference is sufficient to make that clause part of the contract.

Validity of Arbitration Agreements in Texas

Under Tex. Civ. Prac. & Rem. Section 172.031, a written arbitration agreement is valid and enforceable if the agreement is to arbitrate a controversy that exists at the time of the agreement or arises between the parties after the date of the agreement. A party may revoke the agreement only on a ground that exists at law or in equity for the revocation of a contract.

Health Care Liability Claims

Tex. Civ. Prac. & Rem. Section 74.451 prohibits physicians, professional associations of physicians, or other health care providers from requesting or requiring a patient or prospective patient to execute an agreement to arbitrate a health care liability claim unless the form of agreement delivered to the patient contains a written notice in 10-point boldface type clearly and conspicuously stating that the agreement is invalid and of no legal effect unless it is also signed by an attorney of the patient’s choosing.

Conclusion

In summary, you can require employees to sign arbitration agreements in Texas, but the agreement must meet the requirements outlined in Tex. Civ. Prac. & Rem. Section 172.032 to be valid and enforceable. Additionally, there are specific requirements for arbitration agreements related to health care liability claims.

Jurisdiction

Texas

• Labor