Arbitration of Employment Claims

• Author: Sandra K. Lauro
• Pages: 525-544

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14-1

CHAPTER 14

ARBITRATION OF

EMPLOYMENT CLAIMS

BY SANDRA K. LAURO1

14:1. INTRODUCTION

14:2. STATUTORY AUTHORITY FOR ARBITRATION

A. Federal Arbitration Act

B. Texas General Arbitration Act

C. Applicability of Federal or State Statutes

14:3. THE WAFFLE HOUSE DECISION: THE EEOC’S RIGHT TO PURSUE

LAWSUITS

14:4. FREQUENTLY LITIGATED ISSUES

A. Consent

B. Consideration

1. Reciprocal Promises to Arbitrate

2. Reservation of Rights to Amend or Terminate Arbitration Agreement

C. Scope of Arbitration Agreement

1. Broad Language Will Usually Cover Most Employment Claims

2. Coverage and/or Waiver of Class or Collective Action Claims

3. Coverage of Disputes Distinct From Employment Relationship and Third Party

Beneficiaries

D. Unconscionability

1. Deciding Questions of Unconscionability—Arbitrator or Courts

2. Procedural Unconscionability

3. Substantive Unconscionability

E. Repudiation or Breach of Contract

1 The author would like to thank Nicole H. Muñoz, an associate of the firm Hanshaw Kennedy, LLP, for her excellent

assistance in updating this chapter.

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F. Issues of Arbitrability

14:5. JUDICIAL REVIEW OF ARBITRATION DECISIONS

A. Statutory Grounds for Vacating Award

B. Preservation of Appeal Issues

C. “Manifest Disregard of the Law” Standard

D. Contractual Modification of Standard of Review

14:6. ARBITRATION PROVISIONS IN COLLECTIVE BARGAINING

AGREEMENTS

14:7. JURY WAIVERS AS AN ALTERNATIVE TO MANDATORY

ARBITRATION