79R4232 JMM-D

By:  Barrientos                                                   S.B. No. 715



A BILL TO BE ENTITLED

AN ACT

relating to the prohibition of certain required arbitration 
agreements and employee waivers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 21, Labor Code, is amended 
by adding Section 21.062 to read as follows:
	Sec. 21.062.  REQUIRING ARBITRATION AGREEMENT.  An employer 
commits an unlawful employment practice if the employer fails or 
refuses to hire, discharges, harasses, or in any other manner 
discriminates against an individual in connection with 
compensation, terms, conditions, or privileges of employment 
because the individual refuses to sign an arbitration agreement.
	SECTION 2.  Subtitle A, Title 2, Labor Code, is amended by 
adding Chapter 25 to read as follows:
	CHAPTER 25.  MANDATORY ARBITRATION PROHIBITED
	Sec. 25.001.  MANDATORY ARBITRATION PROHIBITED.  (a) An 
employer may not require as a condition of employment that:
		(1)  an employee submit to mandatory arbitration; or                   
		(2)  an employee or prospective employee waive any 
rights.           
	(b)  An arbitration agreement or waiver described by 
Subsection (a) is not enforceable unless the employee or 
prospective employee:
		(1)  knowingly and voluntarily agrees to the agreement 
or waiver; and
		(2)  signs the agreement or waiver.                                    
	(c)  An arbitration agreement or waiver described by 
Subsection (a) that violates this section is void and 
unenforceable.
	Sec. 25.002.  BURDEN OF PROOF.  In any proceeding in which 
enforcement of an arbitration agreement or a waiver of rights 
described by Section 25.001 is sought, the employer has the burden 
of proof to show that the agreement or waiver was agreed to by the 
employee knowingly and voluntarily and that the agreement or waiver 
was not a condition of employment.
	SECTION 3.  (a) The change in law made by this Act by the 
enactment of Section 21.062, Labor Code, applies only to a 
perfected complaint filed with the civil rights division of the 
Texas Workforce Commission on or after the effective date of this 
Act.  A perfected complaint filed before the effective date of this 
Act is governed by the law in effect on the date the perfected 
complaint was filed, and the former law is continued in effect for 
that purpose.
	(b)  The change in law made by this Act by the enactment of 
Chapter 25, Labor Code, applies to an arbitration agreement or 
waiver of rights entered into before, on, or after the effective 
date of this Act.
	SECTION 4.  This Act takes effect September 1, 2005.