Did I Sign Away My Rights? Oilfield Waivers and Arbitration
Probably not. In Texas, a waiver of your right to sue your employer that you signed before you got hurt is void under Labor Code 406.033. Arbitration agreements are different. They're often enforced, but they only change where your case is heard, not if you have one. The papers that really matter are the ones handed to you after the accident.
Every oilfield job starts with a stack of papers. Orientation forms, safety acknowledgments, a benefit plan, maybe an arbitration agreement. Nobody reads them. Then you get hurt, someone says "you signed a waiver," and you assume it's over. Usually, it isn't.
Not Every Paper Carries the Same Weight
A waiver signed at hire
Texas voids an employee's waiver of injury claims against a nonsubscriber employer if it was signed before the injury.
An arbitration agreement
Moves your case to a private arbitrator instead of a jury. Your claim survives.
The company's master service agreement
A contract between companies. It decides who pays, not if you can sue.
A waiver or release signed after the injury
Can end your claim if it meets the legal requirements. This is the one to worry about.
The Waiver You Signed When You Were Hired
Texas Labor Code 406.033 is clear: if your employer is a nonsubscriber, a waiver of your right to sue it for an injury is void if you signed it before the injury happened. It doesn't matter how it was worded or if you initialed every page. The legislature decided workers can't sign those rights away in advance.
If your employer carries comp, the question doesn't come up the same way, because comp already limits suits against your employer. Your claims against other companies on location are untouched by anything you signed for your employer. See can I sue my employer.
Releases from other companies
Some operators and contractors have workers sign a site orientation form or visitor sheet that includes release language. Texas requires a release of a company's own future negligence to say so expressly and to be conspicuous. Fine print buried in a sign in sheet often fails that test.
Arbitration Agreements Are Different
Many nonsubscriber plans include an agreement to arbitrate injury claims. In In re Halliburton (2002), the Texas Supreme Court enforced one, and held that an employee who keeps working after getting notice of the program can be bound by it, even without a fresh signature.
Arbitration is not a waiver of your claim. You still present evidence, call witnesses and recover damages. What changes:
Arbitration terms can be challenged
Not every term in an arbitration agreement holds up. In In re Poly America (2008), the Texas Supreme Court refused to enforce provisions that stripped away remedies the law guarantees, while keeping the agreement to arbitrate. Terms that cap damages, shorten deadlines, stick you with big fees or let only the company change the rules can be attacked. Arbitration agreements also usually only bind the parties to them, so your claims against the operator or other contractors may stay in court.
The MSA Isn't About You
You'll hear that "the contract" protects a company. Usually that means the master service agreement between your employer and the operator. Those agreements are full of indemnity clauses, where each company agrees to cover certain losses for the other. Texas regulates those clauses in the oilfield through the Oilfield Anti Indemnity Act in Civil Practice and Remedies Code Chapter 127.
You didn't sign the MSA, and it doesn't waive your claims. It decides which company or insurer ends up paying. That can actually help your case, because it shows where the insurance is.
The Papers That Show Up After the Accident
This is where workers lose rights. Under 406.033, a nonsubscriber can get a valid waiver after the injury if every one of these is true:
Timing. You signed it at least 10 business days after you reported the injury.
A doctor first. A nonemergency doctor evaluated you before you signed.
Plain and visible. It's in writing, states its true intent and is conspicuous, like bold or larger type.
Your choice. You signed it knowingly and voluntarily.
These usually come attached to plan benefits or a check, about two weeks after the accident. Companies know the rules and follow them carefully.
Watch who the release covers
Settlement releases are often written to cover more than the company paying you. Look for language releasing "affiliates," "contractors," "operators" or "all other persons." Signing that for a small payment from one company can wipe out a much bigger claim against another. See third party claims.
Already Signed Something?
A waiver that missed even one statutory requirement can fail. And no release covers parties or claims it doesn't name.
Three Lines a Nonsubscriber Has to Clear
Business Days
The earliest a valid waiver can be signed, counted from when you reported the injury.
Medical Evaluation
A nonemergency doctor has to evaluate you before you sign.
Conspicuous
The waiver has to stand out on the page and state what it really does.
More on Waivers and Arbitration
Is a waiver I signed when I was hired valid in Texas?
Usually not. Texas Labor Code 406.033 voids an employee's waiver of injury claims against a nonsubscriber employer if it was signed before the injury. Arbitration agreements signed at hire are a different matter and are often enforced.
Can I be forced into arbitration for an oilfield injury?
Often, if you signed a valid arbitration agreement or kept working after being told about one. Texas courts have enforced these in nonsubscriber cases since In re Halliburton (2002). Arbitration doesn't end your claim, but it moves it out of court.
Does my company's master service agreement waive my right to sue?
No. You're not a party to the contract between your employer and the operator. Those agreements shift which company pays, but they don't take away your claims.
What if I already signed a release after my injury?
Don't assume it's over. A release from a nonsubscriber has to meet strict statutory requirements, and any release only covers the parties and claims it actually names. Have a lawyer read it.
See all of our oilfield injury questions, or read about workers compensation versus a lawsuit in Texas.
Texas Labor Code Chapter 406 · Civil Practice and Remedies Code Chapter 127
This page is general information about Texas law, not legal advice for your situation. Reading it does not create an attorney client relationship.
Don't Let a Signature
Decide Your Case.
Most of what you signed at hire doesn't hold up the way the company says. What you sign next might. Talk to a Board Certified oilfield injury lawyer first.