Justia Arbitration & Mediation Opinion Summaries

SSC Selma Operating Company, LLC, doing business as Warren Manor Health and Rehabilitation Center, and SavaSeniorCare Administrative Services, LLC, appealed a circuit court order denying their motion to compel arbitration of a retaliatory-discharge claim filed against them by Jackie Fikes. Fikes sued the companies, seeking to recover worker's compensation benefits pursuant to the Alabama Workers' Compensation Act, and alleging that the companies had discharged her from her employment in violation of Ala. Code 1975, sec. 25–5–11.1, solely because she had filed a claim for worker's compensation benefits. Fikes alleged that in 2013, she suffered a work-related injury when she attempted to lift a patient while working for the companies as a certified nurse assistant; that she underwent medical treatment for her work-related injury; and that she returned to work under light-duty restrictions until Spring 2014, at which time, she says, the companies wrongfully terminated her employment. Fikes requested in the complaint that the worker's compensation claim and the retaliatory-discharge claim be severed in order for the retaliatory discharge claim to be tried by a jury. The companies moved to compel arbitration of the retaliatory discharge claim pursuant to their employment-dispute resolution program ("the EDR program") under which Fikes had agreed to be bound. Fikes responded, arguing that the retaliatory-discharge claim was not covered by the EDR program. After review, the Alabama Supreme Court concluded Fikes failed to demonstrate her retaliatory-discharge claim was not covered by the EDR program. Accordingly, the Court reversed the trial court's order denying the companies' motion to compel arbitration of that claim. View "SSC Selma Operating Company, LLC v. Fikes" on Justia Law

Fair Labor Standards Act claims, not dependent on interpretation of collective bargaining agreement, need not be arbitrated, where arbitration clause does not include a clear waiver.Certified nursing assistants, sued their employer, Silver Care, for violations of the Fair Labor Standards Act (FLSA) and related New Jersey laws, claiming that Silver underpaid them for overtime by failing to include certain hourly wage differentials in the calculation of plaintiffs’ regular rate of pay, and by deducting plaintiffs’ half-hour meal breaks from their total hours worked, although they often worked through those breaks. Silver unsuccessfully moved to dismiss or to stay the proceedings, citing the arbitration clause in the governing collective bargaining agreement (CBA). The Third Circuit affirmed. A court may compel arbitration of a plaintiff’s federal statutory claim when the arbitration provision clearly and unmistakably waives the employee’s ability to vindicate that right in court and the federal statute does not exclude arbitration as an appropriate forum. If no clear or unmistakable waiver exists, arbitration may be compelled if the plaintiff’s FLSA claim “depends on the disputed interpretation of a CBA provision,” which must “first go to arbitration.” Silver did not dispute that the arbitration provision lacks a clear and unmistakable waiver. Neither of the FLSA claims depend on disputed interpretations of CBA provisions. View "Jones v. SCO Silver Care Operations LLC" on Justia Law

Temporary staffing company Real Time Staffing Services, LLC doing business as Select Staffing (Real Time) hired Garcia in 2011 as an hourly employee. Real Time then assigned Garcia to work for Pexco, LLC. As part of the hiring process with Real Time, Garcia filled out an employment application which included an arbitration agreement between Garica and Real Time. Pexco was not a signatory to the arbitration agreement. Garcia filed suit against Real Time, Pexco, and Aerotek, Inc. for violations of the Labor Code and unfair business practices pertaining to payment of wages during his assignment with Pexco. The operative complaint alleged “each and every one of the acts and omissions alleged herein was performed by, and/or attributable to, all DEFENDANTS, each acting as agents and/or employees, and/or under the direction and control of each of the other DEFENDANTS, and that said acts and failures to act were within the course and scope of said agency, employment and/or direction and control.” Each cause of action in the operative complaint was alleged against “All Defendants” and no distinction was made between Real Time or Pexco. Real Time and Pexco moved to compel individual arbitration of Garcia’s claims. The trial court granted the motion to compel arbitration. Garcia appealed the order granting Pexco’s motion to compel individual arbitration. The Court of Appeal found Garcia was equitably estopped from denying Pexco’s right to arbitrate and the agency exception applied. View "Garcia v. Pexco, LLC" on Justia Law

Dismissal for failure to exhaust collective bargaining agreement (CBA) grievance process was improper where it was unclear that CBA required resort to that process for claims under Fair Labor Standards Act (FLSA).Vega worked for Forest as a seasonal employee, subject to a CBA that included a mandatory four-step procedure culminating in arbitration to resolve employee grievances. Forest terminated Vega. At the time, Vega was owed compensation for 54 hours of work in the preceding two weeks. Forest did not tender a final paycheck, purportedly because it discovered that Vega lacked a valid Social Security number and it did not know how to lawfully make payment to him without such a number. The parties dispute whether Vega made efforts to initiate a grievance. The district court dismissed Vega’s suit under the FLSA, 29 U.S.C. 206(b), for failure to exhaust the grievance procedure. The Seventh Circuit reversed, stating that the collective bargaining agreement did not clearly and unmistakably waive Vega’s right to pursue his FLSA claim in a judicial forum. The district court did not consider whether the CBA required Vega to resort to the grievance process when he is pursuing rights granted to him by the FLSA rather than the contract itself. View "Vega v. New Forest Home Cemetery, LLC" on Justia Law

The First Circuit answered two questions of first impression regarding the Federal Arbitration Act (FAA) by holding (1) in a case where a federal district court is confronted with a motion to compel arbitration under the FAA and the parties have delegated questions of arbitrability to the arbitrator, the applicability of the FAA is a threshold question for the court to determine before compelling arbitration under the FAA; and (2) a provision of the FAA that exempts contracts of employment of transportation workers from the FAA’s coverage applies to a transportation-worker agreement that purports to establish an independent-contractor relationship. Accordingly, the First Circuit affirmed the district court’s order denying the motion to compel arbitration and dismissed this appeal for lack of appellate jurisdiction. View "Oliveira v. New Prime, Inc." on Justia Law

General Mills terminated employees and offered them benefits in exchange for releasing all Age Discrimination in Employment Act (ADEA), 29 U.S.C. 626(f)(1), claims and arbitrating release-related disputes. Plaintiffs, 33 employees who signed releases, subsequently filed suit seeking a declaratory judgment that the releases were not "knowing and voluntary." Plaintiffs also raised collective and individual ADEA claims. The district court denied General Mills' motion to compel arbitration. The court rejected plaintiffs' claim that the agreement to arbitrate applies only to claims "relating to" the release of claims, and their substantive ADEA claims are not related to the release of claims. Rather, the court found that the agreements' "relating to" sentence showed the parties' intent to arbitrate both disputes about the release and substantive ADEA claims. Therefore, the ADEA claims were covered by the agreements. The court explained that, absent a contrary congressional command, General Mills can compel employees who signed the agreements to arbitrate their ADEA claims. In this case, the court concluded that no "contrary congressional command" overrides the Federal Arbitration Act's (FAA), 9 U.S.C. 1 et seq., mandate to enforce the parties' agreement to arbitrate substantive ADEA claims. Accordingly, the court reversed and remanded for further proceedings. View "McLeod v. General Mills, Inc." on Justia Law

The right of firefighters and police officers to collectively bargain for purposes of wages, hours, and working conditions was secured through the Police and Firemen Collective Bargaining Act, commonly known as Act 111. Appellant, the International Association of Fire Fighters, Local 302 (“IAFF”), was the exclusive bargaining representative for the firefighters of Appellee, the City of Allentown (the “City”), for purposes of collective bargaining with the City. The City and the IAFF were parties to a seven-year collective bargaining agreement which ran from January 1, 2005 through December 31, 2011. In this appeal by allowance, the issue this case presented for the Supreme Court's review was, in the context of an interest arbitration award, whether a provision requiring a certain minimum number of firefighters on duty per shift is a mandatory subject of bargaining or a non-bargainable managerial prerogative. The Court concluded that the number of required firefighters per shift was a mandatory subject of bargaining, and implicated managerial responsibilities, but did not unduly infringe upon those managerial rights, and, thus, could properly serve as a component of an interest arbitration award. The Court reversed the Commonwealth Court, which held to the contrary. View "City of Allentown v. Int'l Assoc. of Firefighters" on Justia Law

Farrar was hired by Direct Commerce as its vice-president of business development and negotiated an employment agreement set forth in a six-page offer letter detailing her compensation, additional bonus structure, and stock options. The agreement also included an arbitration provision, set off by the same kind of underlined heading and spacing as the other enumerated paragraphs of the agreement. When Farrar sued Direct, alleging breach of contract, conversion, wrongful termination, breach of the covenant of good faith and fair dealing, and failure to pay wages owed and waiting time penalties, the employer unsuccessfully sought to compel arbitration. The trial court found the arbitration provision procedurally and substantively unconscionable. The court of appeals reversed. While the arbitration provision is one-sided, as it excludes any claims arising from the confidentiality agreement Farrar also signed, that offending exception is readily severable and, on this record, should have been severed. View "Farrar v. Direct Commerce, Inc." on Justia Law

Plaintiff-respondent Roberto Betancourt sued his employer, defendant-appellant Prudential Overall Supply (Prudential). In Betancourt's complaint, he alleged Betancourt and other Prudential employees worked over eight hours per day or more than 40 hours per week, and that Prudential failed to compensate Betancourt and other employees for all the hours they worked, as well as for missed breaks and meal periods. Prudential moved to compel arbitration but the trial court denied Prudential’s motion. Prudential argued on appeal the trial court erred. Finding no error, the Court of Appeal affirmed the judgment. View "Betancourt v. Prudential Overall Supply" on Justia Law

A police union and the City of Norwalk were parties to a collective bargaining agreement (CBA) governing the terms and conditions of employment for certain city police officers. The CBA provided that disputes over its interpretation will be resolved through arbitration. The Board of Police Commissioners determined that Stephen Couture, a police sergeant employed by the Norwalk Police Department, had violated departmental rules and that his employment should be terminated. Couture ultimately initiated an arbitration proceeding with the State Board of Mediation and Arbitration, and a majority of the arbitration board found that Couture had been terminated for just cause. The trial court vacated the arbitration award on the ground that the City had disciplined Couture twice for the same misconduct in manifest disregard of the law. The Supreme Court reversed, holding that the arbitration board’s decision was not in manifest disregard of the law, and therefore, the trial court improperly vacated the award of the arbitration board. View "Norwalk Police Union, Local 1727 v. City of Norwalk" on Justia Law