Arbitration United States

Texas Supreme Court Remands Employment Arbitration Case for Reconsideration

Published 2026-07-01 1 source Arbitration Award Enforcement Employment Disputes Federal Arbitration Act Texas United States United States

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TL;DR

  • Texas Supreme Court granted a petition for review in an employment arbitration case.
  • The employee challenged the arbitration agreement under the FAA exemption.
  • The case concerns whether the employee falls within the FAA's exemption for certain transportation workers.
  • The Court remanded the case for reconsideration in light of a new U.S. Supreme Court opinion.

Overview

The Supreme Court of Texas has granted an environmental specialist's petition for review and remanded his case regarding a challenge to his employers' motion to compel arbitration under the Federal Arbitration Act (FAA). The employee claims an exemption from the FAA, arguing that the law does not apply to certain classes of workers engaged in foreign or interstate commerce.

What Happened

An environmental specialist employed by Energy Transfer LP, Enable Midstream Partners, LP, and Enable GP, LLC faced a motion to compel arbitration by his employers based on the FAA.

The employee argued that his employment contract was exempt from the FAA under 9 U.S.C. § 1, which excludes employment contracts for seamen, railroad employees, and similar workers engaged in foreign or interstate commerce.

The Texas Supreme Court granted the employee's petition for review.

The Court remanded the case for reconsideration following a new U.S. Supreme Court decision interpreting the same FAA exemption.

Context

The Federal Arbitration Act generally mandates the enforcement of arbitration agreements but contains an exemption for certain transportation workers.

Recent U.S. Supreme Court precedent has clarified the scope of this exemption, prompting appellate courts to revisit related cases.

Why It Matters

  • This remand highlights the impact of evolving U.S. Supreme Court jurisprudence on the interpretation of the FAA exemption.
  • The outcome may affect the arbitrability of employment disputes involving workers engaged in interstate commerce in Texas and potentially beyond.

Sources

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