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Invoke arbitration rights as early as possible

by on
in Employment Law,Human Resources

If an employee has signed an agreement promising to arbitrate employment claims, tell the court right away and ask it to compel arbitration. Otherwise, the court might decide that you waived your right to ask.

Recent case: When he was discharged after just six months, John sued, claiming he had signed on to work for Richmont Holdings under false pretenses. Richmont included in court documents a copy of its arbitration agreement, which John had signed. However, it waited a year and a half to ask the court to move the case to arbitration.

John argued that the delay meant the company waived its right to arbitration. The case went to the Texas Supreme Court, which ruled that he should get a chance to persuade a court that Richmont waived its rights because of the delay. (Richmont Hold­­ings, et al., v. Blake, et al., No. 12-0142, Texas Supreme Court, 2013)

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