Supreme Court Upholds Individual Arbitration Clauses In Employment Contracts

Mandatory arbitration clauses in employment contracts are increasingly a fact of workplace life.  What happens, though, when an employee signs an employment agreement requiring that any job-related disputes be submitted to individual arbitration, rather than class- or collective-action lawsuits?  Do longstanding federal labor laws protecting workers’ right to engage in “concerted activities for the purpose of . . . mutual aid or protection”...
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Court Orders Arbitration in FMLA Termination Case

Darrell VanDeusen
Darrell VanDeusen
10/26/2017
The question of whether and when an employer can compel an employee who is suing it to arbitrate her case rather than proceed in court depends upon the terms of the agreement between the parties.  In Mason v. Athletic & Therapeutic Inst. of Naperville, 2017 U.S. Dist. LEXIS 173046 (S.D. Ind. Oct. 19, 2017), a federal district court told the former employee of an Indiana sports therapy clinic that arbitration is the proper forum for her...
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Seventh Circuit Sides with NLRB on Arbitration Agreements, Creates Circuit Split

Kollman & Saucier
Kollman & Saucier
06/02/2016
In a surprising decision for atypically business-friendly appellate court, the United States Court of Appeals for the Seventh Circuit has sided with the National Labor Relations Board’s position that a mandatory agreement requiring employees to waive the right to bring a class or collective action in arbitration violates the National Labor Relations Act (NLRA).  Lewis v. Epic Systems Corporation, No. 15-2997 (7th Cir. May 26, 2016). Epic...
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Strange Bedfellows in SCOTUS Arbitration Ruling

Darrell VanDeusen
Darrell VanDeusen
12/15/2015
In a 6-3 decision, the Supreme Court has decided that satellite television customers are required to individually arbitrate their disputes with the provider, DirecTV. The Court held that the Federal Arbitration Act (FAA) preempts the use of a California state law that said such a provision was unenforceable. DirecTV, Inc. v. Imburgia, 2015 U.S. LEXIS 7999 (Dec. 14, 2015). The decision, which will apply equally to employment and commercial contracts,...
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You Can't Have It Both Ways: Arbitration Agreement in Employee Handbook is Not Binding

Clifford Geiger
Clifford Geiger
12/09/2015
The U.S. Court of Appeals for the Fourth Circuit recently confirmed that an employer cannot impose a mandatory arbitration requirement on its employees through an employee handbook when the handbook also contains a disclaimer of contractual intent. Lorenzo v. Prime Commc’ns, No. 14-1622 (4th Cir. Nov. 24, 2015). Lorenzo brought an FLSA claim against her former employer, Prime Communication, L.P., alleging that she was unlawfully deprived of earned...
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Hooters Rails Against Award in Arbitration It Required

Darrell VanDeusen
Darrell VanDeusen
04/04/2015
Employers without a union sometimes think it’s a good idea to consider implementing a policy that requires employees to arbitrate workplace claims rather than permit them to pursue remedies in court. The selling point, the story goes, is that it’s cheaper, faster and you don’t have to worry about a jury deciding the fate of the parties. Anyone who has gone through the arbitration process knows that along with the positives of arbitration –...
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Fourth Circuit: Only Whistleblowing Claims Are Subject to Dodd-Frank Act’s Arbitration Carve-Out

Kollman & Saucier
Kollman & Saucier
05/09/2014
To arbitrate or not to arbitrate – that was the question the Fourth Circuit faced in Santoro v. Accenture Federal Services, LLC, a recent employment discrimination case involving statutory interpretation of the Dodd-Frank Act. No. 12-2561 (4th Cir. May 5, 2014). Because the plaintiff did not bring a whistleblower claim, the Court concluded, “to arbitrate” carried the day. The facts underlying Dr. Armond Santoro’s claims are relatively...
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Maryland Federal Court Denies Arbitration for Wage Claims

Kollman & Saucier
Kollman & Saucier
12/17/2013
The Federal District Court in Maryland recently issued a ruling that should give Maryland employers some concern.  In Jeffrey B. Mould v. NJG Food Service Inc., et al.,  the Court examined the effect of an arbitration agreement on an employee’s federal and state wage claims.  Most practitioners know that arbitration is generally favored by the courts and is hotly contested by plaintiffs, who prefer to try their claims before a jury.  This case...
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Appellate Court Reverses NLRB and Upholds Legality of Class Action Waivers

Kollman & Saucier
Kollman & Saucier
12/04/2013
Employers scored a big victory yesterday when the United States Court of Appeals for the Fifth Circuit reversed the National Labor Relations Board's D.R Horton ruling, which invalidated an employer's arbitration agreement containing a waiver of an employee's right to file class-action claims. D.R. Horton v. NLRB, 5th Cir No. 12-60031 (12/3/13).  The decision will make it  easier for employers to enforce class-action waivers, including waivers of...
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20-Day Window Too Short A Time To File Internal Complaint Of Discrimination

Garrett Wozniak
Garrett Wozniak
05/08/2013
Quality Restaurant Concepts, LLC (perhaps better known as Applebee’s), maintains an internal dispute resolution (IDR) process and an Employment Arbitration Policy.  The company’s arbitration policy covers Title VII claims, and the IDR policy set a 20-day deadline for employees to pursue claims of discrimination.  Under the arbitration policy, Applebee’s employees are required to complete the IDR process before participating in arbitration. ...
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