Arbitration agreements are very common in the Texas work force. Increasingly common is the onboarding process in which new employees sign everything online. That leads to issues. The arbitration agreement provision is very routine. Will the employer get around to signing every arbitration agreement? In Hi Tech Luxury Imports v. Morgan, No. No. 03-19-00021-CV
Contracts
Texas Supreme Court Rejects Drug Testing Liability
Truck drivers and many others are tested for drug use routinely. The practice of conducting drug testing has become pervasive across a wide swath of industries. But, what happens when a drug testing company gets it wrong? What happens when the laboratory makes a mistake? Having received many of these phone calls, I can tell…
Court Invalidates Non-Compete Agreement
The plaintiff, Mary Pearce, worked for Universal Lubricants for 16 years selling lubricants. In 2016, Petrochoice acquired Universal. Petrochoice told Pierce and the other employees they must sign a non-compete agreement. A few months later, Petrochoice fired Pearce. Because of the non-compete agreement, Pearce had trouble finding work. A few months later, she found a…
Linkedin Contact List Not Secret
If you work for a company for a few years and maintain your LinkedIn account, you will build up a set of contacts based on your employment. What happens if those contacts are customers? Do they belong to you or to your employer? That was the issue in Cellular Accessories for Less, Inc. v. Trinitas…
Trump Campaign Fails to Pay Arbitration Deposit
Arbitration has been sold as a more efficient, cheaper alternative to litigation. But, the reality is that it can be very expensive. And, unlike traditional courts, if you do not pay the arbitrator, the lawsuit stops. AAA, the leading provider of arbitral service, requires periodic deposits to cover anticipated future costs of the arbitration. Pres.…
Electronic Signature on Arbitration Agreement Fails
Forced arbitration has become more and more prevalent. In the work place, many employers provide an orientation which occurs online. So, forced arbitration often requires the new employee to agree (or not) to forced arbitration online. What happens if the employee does not sign the forced arbitration agreement? And, what happens if an employee does…
Extensive Litigation Does not Waive Arbitration
What happens when an employee files suit, perhaps unaware of the existence of a forced arbitration agreement? How long might a lawsuit progress before the employer mentions the supposed arbitration agreement? In Vectra Infosys v. Adema, No. 05-18-01371 (Tex.App. Dallas 8/28/2019), the employer responded to the lawsuit and conducted extensive discovery. The employer filed…
To Be or Not To Be an Independent Contractor
Many employers in Texas are trying to save a few dollars by carrying their employees as independent contractors. As an independent contractor, the employer need not provide medical benefits or other types of benefits. But, as an independent contractor, the injured employee can sue the employer for tort injuries. In Stevenson v. Waste Management of…
Fourth Court Denies Arbitration Agreement
Mandatory arbitration agreements have become very common in a wide variety of jobs. Typically, the newly hired employee signs a raft of documents, one of which may include an arbitration agreement. Often, the employee has no recollection that s/he signed an arbitration agreement. One plaintiff attorney, recognizing that the employee may not know whether he…
Employee Handbooks Are Not Binding
Most large employers have employee handbooks, those set of policies that explain things like vacation and sick leave, discipline, etc. Employers will often describe how they are “binding” and must be followed. But, legally, they are not binding, at all. They look thorough and professional and provide some comfort to employees in an uncertain world.…