USA – TEXAS Law and Practice Contributed by: Alana Ackels and Katie Beaird, Bell Nunnally & Martin
(EFAA) came into effect on 3 March 2022. Under this law, an employer cannot mandate forced (confidential) arbitration of claims related to sexual harassment and sexual assault. It also renders class action waivers of sexual harassment and sexual assault claims unen - forceable. If the agreement includes a provision that requires mediation prior to filing a lawsuit or arbitration, this will also typically be enforced by Texas courts. 9.3 Costs Under applicable Texas and federal law, employees are entitled to their attorney’s fees and costs if they prevail on claims of discrimination, harassment and retaliation, hostile work environment claims, or claims that they were not paid the proper overtime or mini - mum wage. However, employers who successfully defend against such claims typically have no claim for their fees unless they can show that the employee brought it in bad faith, which Texas courts have held to be a very high – nearly impossible – standard.
Employees are also entitled to their attorney’s fees and costs if they are successful on a breach of contract claim, which typically arises when an employee claims they were not paid properly under their employment contract before or after termination. In these cases, if an employer successfully defends itself, it can typi - cally recover attorney’s fees.
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