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A BILL TO BE ENTITLED
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AN ACT
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relating to mandatory arbitration as a condition of employment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 2, Labor Code, is amended by |
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adding Chapter 26 to read as follows: |
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CHAPTER 26. EMPLOYMENT AGREEMENTS |
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Sec. 26.001. MANDATORY ARBITRATION AGREEMENT AS CONDITION |
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OF EMPLOYMENT. (a) An employer may not require an employee to sign |
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a mandatory arbitration agreement as a condition of employment |
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unless, on hiring the employee: |
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(1) the employer verbally reviews the agreement with |
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the employee; and |
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(2) the employer and employee sign an acknowledgment |
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that: |
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(A) the employer has reviewed the agreement with |
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the employee; |
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(B) the employer has answered the employee's |
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questions and concerns related to the agreement; and |
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(C) both parties understand their rights and |
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responsibilities under the agreement. |
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(b) The arbitration agreement and acknowledgment must be |
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provided to the employee in the employee's native language. |
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SECTION 2. The change in law made by this Act applies only |
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to an employer requiring arbitration as a condition of employment |
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for an employee who begins employment on or after the effective date |
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of this Act. An employer requiring arbitration as a condition of |
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employment for an employee who began employment before that date is |
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governed by the law in effect immediately before the effective date |
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of this Act, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |