Terrance L. Burton worked as a personal trainer for 24 Hour Fitness from September 2006 to May 2007 and, in December of 2007, filed a lawsuit, which later included a class of those similarly situated, against the company alleging that it violated California state labor laws by not paying lawfully owed wages, among other claims. Despite the fact that the employer stated during the pre-trial process that it would not file a motion to compel arbitration pursuant to a forced arbitration clause Burton signed when he started employment, on November 10, 2010 the company filed a motion to compel arbitration. (Burton v. 24 Hour Fitness USA, Inc., Court of Appeals of California, Second District, Division Five, January 18, 2012).
Back to Top
It has been heavily reported, including by Steven Davidoff Solomon in The New York Times, that American Apparel relied on forced arbitration clauses to keep misconduct by its Chief Executive Officer Dov Charney secret from the company’s Board of Directors. (“Arbitration Clauses Let American Apparel Hide Misconduct”, Steven Davidoff Solomon, The New York Times, July 15, 2014.
After Alisha Marzette and Kathy Dunmire filed a lawsuit alleging employment discrimination against their employer, Anheuser-Busch, the company tried to prevent them from bringing their claims in court, based on a forced arbitration clause contained in an employment application (Marzette, et al. v. Anheuser Busch, Inc., et al., No. ED97160, Mo. Ct. App. 2012).
Back To Top
In September of 2015 Margot Roosevelt of the Orange County Register reported that Applied Medical Resources distributed a letter to its employees in December of 2014 instructing them that, in order to be eligible for a year-end bonus, they must agree to be bound by a forced arbitration clause. (“A push to end mandatory workplace arbitration: Will aggrieved workers get their day in court?,” Margot Roosevelt, Orange County Register, Sept. 20, 2015).
Cari Butcher filed a lawsuit alleging that her former employer Bally’s engaged in sexual harassment and sexual discrimination, among others charges. An appellate court held the forced arbitration clause Butcher signed when she began employment forbade her from pursuing her claims in court. (Butcher v. Bally Total Fitness Corp., 2003-Ohio-1734).
When Lesia Body Phillips filed a lawsuit against Bestway Rental alleging that the company engaged in unlawful discrimination, Bestway responded by moving to compel arbitration pursuant to a forced arbitration clause Phillips signed when her employment began. (Phillips v. Bestway Rental Inc., Case No.13-60227, (5th Cir., Oct. 21, 2013)).
On March 30, 2016 Adrienna Brown filed a lawsuit against BJ’s Restaurant Operations alleging that it discriminated against her based on her race in violation of Title VII. In response, on May 19, 2016, BJ’s filed a motion in federal court in Arkansas to compel arbitration. (Brown v. BJ’s Restaurant Operations, Case No. 4:16-cv-00167-SWW, (E.D. Ark., May 19, 2016)).
Months after Navy Reservist Kevin Ziober began working at BLB Resources, his employer asked him to sign a forced arbitration clause and when he filed a lawsuit against the company alleging that it unlawfully terminated him in violation of federal law designed to protect service members such as himself, BLB moved to compel arbitration of his claims. (“Start-Ups Embrace Arbitration to Settle Workplace Disputes,” Jessica Silver-Greenberg and Michael Corkery, The New York Times, May 14, 2016).
On May 12, 2015 Lauren Weber of the Wall Street Journal reported that the United States arm of a pharmaceutical company prohibiting employees from receiving sales commissions unless they agreed to resolve all disputes against their employer in arbitration rather than in court. (“Employees Pay a Price to Retain Right to Sue,” Lauren Weber, Wall Street Journal, May 12, 2015).
When Andrew Ramirez filed a lawsuit on behalf of himself and other employees who alleged that Bridgestone failed to pay wages and overtime compensation that they were owed under the Fair Labor Standards Act, Bridgestone relied on a forced arbitration clause both to prevent Mr. Ramirez from pursuing his claims in court and to prevent his colleagues from joining him in a class action. (Ramirez v. Bridgestone Retail Operations, LLC, Case No. 12-cv-14480, (E.D. Mich., Apr. 12, 2013)).
Matthew J. Ryan began working as an attorney for BuckleySandler in 2008 and subsequently filed a lawsuit alleging that BuckleySandler engaged in unlawful age discrimination against him. In response, BuckleySandler filed a motion to compel arbitration pursuant to a forced arbitration clause Ryan signed at the beginning of his employment. (Ryan v. BuckleySandler, Case No. 2013-1816, (D.D.C., Sept. 9, 2015)).
In an article published by Pacific Standard Magazine, Collette Shade described Buzzfeed employment documents as containing a clause stipulating that all disputes are to be brought before an arbitrator and not a judge or jury. (“Content Creators of the World, Unite!,” Collette Shade, Pacific Standard Magazine, Sept. 14, 2015).
According to an employment application for hourly workers, Carrols Restaurant Group (which operates more than 650 Burger King locations) imposes a forced arbitration program on these employees as a condition of employment. (Employment document).
When Christina Mocino began working at Catalina Restaurant Group, her employer gave her a document requiring her to arbitrate all claims against it that also included an option for employees to retain the right to bring class action lawsuits, which Mocino did. In May of 2013 Mocino filed a class action lawsuit in state court against Catalina alleging violations of the wage and hour laws and, in response, Catalina filed a motion to compel arbitration, which a trial court granted and an appellate court upheld. (Mocino V. Catalina Restaurant Group, Inc., (Super.Ct.No. RIC1306210, Jun. 19, 2015)).
On May 5, 2009 a federal district judge in Arizona granted The Cheesecake Factory’s motion to compel arbitration of a dispute alleging violations of Title VII, among other claims, pursuant to a forced arbitration clause it required the plaintiffs, Bryce Fitzpatrick and Albert Miller, sign as a condition of employment. (Equal Employment Opportunity Commission v. Cheesecake Factory, Inc., Case no. CV 08-1207-PHX-NVW, (D. Ariz., May 5, 2009)).
In an article in the Wall Street Journal, Lauren Weber reports that CVS implemented an arbitration program for its employees in 2014. (“More Companies Block Employees From Filing Suits,” Lauren Weber, Wall Street Journal, Mar. 31, 2015).
Jennifer Baier worked as a waitress at an Olive Garden restaurant (a subsidiary of Darden Restaurants) and filed a lawsuit against alleging that the company violated Missouri state law by discriminating against her because of her gender. Darden responded by moving to compel arbitration, pursuant to a clause Baier was required to sign towards the beginning of her employment. (Baier v. Darden Restaurants et. al., Case No. WD 76584, (Mo. Ct. App., Feb. 25, 2014)).
On July 20, 2016 Déjà Vu Consulting, an international operator of strip clubs, asked a federal judge in Florida to compel arbitration after a former exotic dancer filed a putative collective action lawsuit alleging that the company had misclassified dancers as independent contractors and that it owed back pay. (Garcia et al. v. Deja Vu Showgirls of Tampa LC et al., Case No. 8:16-cv-01193, M.D. Fla., Jul. 20, 2016).
According to an employment document posted online by the American Arbitration Association, in 2013 Dish Network required an employee named Matthew Ryan to agree to arbitrate all disputes in exchange for waiving his right to a jury trial. (Employment Document between Dish Network and Matthew Ryan).
In September of 2014, the U.S. Equal Employment Opportunity Commission sued Doherty Enterprises Inc. (operator of Applebees, Noodles and Co., and Panera Bread) in federal court alleging that the company violates federal anti-discrimination laws by imposing a forced arbitration clause for all employment-related claims as a condition of employment. (“EEOC sues restaurant franchisee over employee arbitration requirement,” Bill Kenealy, Business Insurance, Sept. 22, 2014).
On December 22, 2015 the National Labor Relations Board upheld an Administrative Law Judge’s findings that the forced arbitration clause a Brooklyn, New York Domino’s Pizza restaurant imposed on its workers violates federal labor law because it prohibits workers from joining together in class and collective action lawsuits. (Domino’s Pizza and Fast Food Workers Committee, Case No. 29-CA-103180, Dec. 22, 2015).
Stephen Morris filed a lawsuit, which Kelly McDaniel joined, against Ernst & Young, his employer, alleging that it misclassified him and similarly situated individuals and denied these individuals lawfully owed wages in violation of the Fair Labor Standards Act. As part of their employment, Ernst & Young imposed a clause requiring all legal claims to be resolved in arbitration and that any arbitration proceedings arising out these claims be pursued individually. The U.S. Court of Appeals for the Ninth Circuit ruled on August 22, 2016 that to require these individuals to arbitrate their claims individually violates the National Labor Relations Act. (Morris v. Ernst & Young, LLP, Case No. 13-16599, 9th Cir. Aug. 22, 2016).
Eve Byron reported in the Helena Independent Record that a federal district court judge in Montana ruled on October 7, 2011 that the forced arbitration clauses FedEx Ground Package System imposed on its drivers was unconscionable and unenforceable. (“Lawsuit against FedEx moves forward as judge throws out 'unconscionable' arbitration mandate,” Eve Byron, Helena Independent Record, Oct. 8, 2011)
In July of 2016 former Fox News anchor Gretchen Carlson filed a lawsuit against Fox News chairman Roger Ailes accusing him of sexual harassment. In response to Carlson’s suit, Ailes moved to compel arbitration of Carlson’s allegations pursuant to a forced arbitration clause in her employment documents. (“The Dirty Trick Fox News Is Using To Undercut Gretchen Carlson’s Sexual Harassment Suit,” Ian Millhiser, ThinkProgress, Jul. 11, 2016)
After she was fired as an assistant manager at GameStop, Cara New filed claims in court for sexual harassment and wrongful discharge. Relying on a forced arbitration clause presented to New at the beginning of her employment, GameStop moved to dismiss her case and compel arbitration. (New v. Gamestop Inc., Case No. 12–1371, (W. Va., Nov. 6, 2013)).
Guitar Center told its employees that they must sign a forced arbitration clause or they will lose their jobs. (“Guitar Center Tells Employees To Sign Arbitration Agreements Or Lose Their Jobs,” Dave Jamieson, Huffington Post, Jan. 15, 2016).
As reported by Lauren Weber in the Wall Street Journal, Halliburton has implemented a forced arbitration program for its employees. (“More Companies Block Employees From Filing Suits,” Lauren Weber, Wall Street Journal, Mar. 31, 2015).
Following 18 years of employment at a Jack In The Box restaurant, David Kunzie filed a lawsuit in Missouri state court alleging that the company violated state law by terminating him based on his age and gender. In response, Jack In The Box moved to compel arbitration pursuant to a forced arbitration clause it distributed to Kunzie during his employment. (Kunzie v. Jack In The Box, Inc., Case No. ED92974, (Mo. Ct. App., Mar. 9, 2010)).
According to an employment document posted on its website, as of July 17, 2009, JC Penney imposes forced arbitration on all newly-hired associates.
Drake Alabanza worked as a cook at a KFC in Hawaii and, after being terminated in February of 1993, he filed a complaint with a state agency alleging race discrimination and harassment and a lawsuit in state court. KFC later filed a motion to compel arbitration pursuant to a clause in Alabanza’s employment application. (Brown v. KFC National Management Co., 921 P. 2d 146 – (Haw. 1996.))
Lauren Weber reported in the Wall Street Journal that Kmart has implemented a forced arbitration program for its employees. (“More Companies Block Employees From Filing Suits,” Lauren Weber, Wall Street Journal, Mar. 31, 2015).
When Stephanie Cruise applied for a job with Kroger in 2007, in order to begin employment, the company required that she sign a document containing a clause stipulating that all disputes will be resolved in arbitration rather than in court. (Cruise v. Kroger Co. et. al., Case No. B248430, (Cal. Ct. App., Aug. 27, 2014.))
On September 28, 2014 a federal appellate court found that the forced arbitration clause that Lenscrafters imposes on its employees, which includes a provision prohibiting these individuals from bringing representative actions under California state law, to be unenforceable. (Sakkab v. Luxottica Retail N. Am., Inc., Case No. 13-55184 (9th Cir. Sept. 28, 2015.))
Catherine Jane Valle and Don Perolino Cristobal worked for Lowe’s and, upon the commencement of employment, they signed forced arbitration clauses requiring that they arbitrate any dispute with their employer, rather than bring a case in open court. (Valle v. Lowe’s HIW, Inc., Case No. 11-1489-SC (N.D. Cal., Aug. 30, 2012.))
Shukri Sakkab worked for a Lenscrafters retail store (Lenscrafters is owned by Luxottica) and in 2012 filed a lawsuit in California state court against the company alleging, among other things, that Luxxotica failed to pay him and other employers overtime they lawfully were owed. In response to the lawsuit, Luxxotia, pursuant to a forced arbitration clause it required Sakkab sign, filed a motion to compel arbitration. (Sakkab v. Luxxotica Retail North America, Inc., Case No. 13-55184 (9th Cir. Sept. 28, 2015).
Janet Payne was hired as a part-time cashier at Menards and was subject to a forced arbitration clause that included a prohibition on joining with other employees to pursue class actions. After being injured at work and then terminated, Payne filed a charge with the EEOC. In April 2016, Menard’s settled with the National Labor Relations Board, and as part of the settlement Menards will no longer use forced arbitration agreements to prevent workers from filing class actions. (“Labor Complaint At Valparaiso Menards Leads To Company-wide Changes,” Annie Ropeik, WBAA-National Public Radio, Apr. 28, 2016).
In 2014 a federal appeals court reversed a trial court’s refusal to compel arbitration following former employee Faine Davis’s allegation that the company violated various state and federal employment laws, which prompted Davis to bring a putative class action lawsuit that the appeals court found she was barred from doing pursuant to a policy change in Nordstrom’s employee handbook. (Davis v. Nordstrom, Inc., Case No. 12-17403, (9th Cir., Jun. 23, 2014).
John Patterson and Jerry Robinson worked at a Red Lobster restaurant in Mississippi in the 1990’s and filed a complaint with the EEOC in 1997, and later a lawsuit in federal court, alleging that their employer discriminated against them on the basis of race in violation of federal law. In response, the restaurant moved to dismissed the action and compel arbitration. (Patterson v. Red Lobster aka GMRI, Inc., Case No. 3:99CV155LN, (S.D. Miss., Oct. 6, 1999).
On June 9, 2015 In These Times published an article written by Bruce Vail describing that an Administrative Law Judge for the National Labor Relations Board found that The Rose Group (operator of Applebee’s, Corner Bakery, and others) had violated the National Labor Relations Act by imposing on workers as a condition of employment a forced arbitration clause preventing them from bringing class and collective action lawsuits. (”Applebee’s Is Trying To Limit Workers’ Ability to Sue the Company When Their Wages Are Stolen,” Bruce Vail, In These Times, June 9, 2015).
Jorgie Franks worked in sales for a Samsung Electronics America store in Florida and alleged that the company engaged in an unfair labor practice by imposing on him as a condition of employment a forced arbitration clause that prevented him from filing any action in court and prohibited him from joining together with other employees in class or collective arbitration actions. (Samsung Electronics America, Inc. f/k/a Samsung Telecommunications America, LLC and Jorgie Franks, Case 12–CA–145083, Feb. 3, 2016).
As reported by Lauren Weber in the Wall Street Journal, Sears imposes a forced arbitration program on at least some of its employees. (“More Companies Block Employees From Filing Suits,” Lauren Weber, Wall Street Journal, Mar. 31, 2015).
According to an online job application, “It is Starbucks policy that after October 1, 2014, all new hires shall be subject to an arbitration agreement as a condition of employment.” (A copy of the application in on file with The Institute.)
Malika Zghaoui filed a lawsuit in state court against Sunoco alleging that the company engaged in sexual harassment and sex based discrimination, among other claims, and the company moved to compel arbitration pursuant to a forced arbitration clause it imposed on her. A federal court granted Sunoco’s motion to compel arbitration. (Zghaoui v. Sunoco Inc., Case 1:11-cv-11911-GAO, (D. Mass., Apr. 13, 2011)).
In August 2010, Jacquelyn Ann Whittington filed a lawsuit alleging that Taco Bell had failed to pay both her and a group of her co-workers overtime wages they were owed under the Fair Labor Standards Act. Taco Bell tried repeatedly to move the lawsuit to arbitration pursuant to a forced arbitration clause and, in August of 2013, settled the case. (Whittington v. Taco Bell of America Inc. et. al., Case No. 1:10-cv-01884, (D.Colo. Nov. 13, 2013)).
Ronald Gillette and Abdul Mohamed were among the many Uber drivers who were required to agree to forced arbitration clauses before they could begin working for the ride-sharing company. Litigation in California and Massachusetts in which groups of drivers allege that they were improperly classified as independent contractors and owed overtime wages under the Fair Labor Standards Act recently settled, but kept Uber’s forced arbitration clause intact. (“Uber’s Attempt To Silence Its Drivers May Have Just Backfired,” Clark Taylor, In These Times, Aug. 19, 2015).
In a case that ultimately reached the Supreme Court, Waffle House presented applicant Eric Baker with a document stipulating that any dispute with his prospective employer would be “settled by binding arbitration.” (EEOC v. Waffle House, Inc., (534 U.S. 279).
In March of 2011 Mark Farris began working for The Western & Southern Life Insurance Company in a sales position and, after being terminated, he filed suit against the company alleging violations of Title VII of the Civil Rights Act. The company had in place a dispute resolution program stipulating that all legal claims between the two parties would be submitted to final and binding arbitration, which was to be the exclusive forum in which to resolve disputes. (Farris v. Western and Southern Life Insurance Co., Case No. 1:14-cv-421-WTL-DML, (S.D. Ind. Oct. 28, 2014).
On March 10, 2016 Nitasha Tiku reported for BuzzFeed that Tara Zoumer, an associate community manager for a start-up company that provides workspaces, was fired after she refused to sign an employment document with a forced arbitration clause. (“WeWork Is Being Sued By An Ex-Employee,” Nitasha Tiku, BuzzFeed, Mar. 10, 2016).
Yvonne Cardwell worked at Whataburger and sued the company after suffering an injury at work. In response to Cardwell’s suit, Whataburger filed a motion in state court seeking to compel her case into arbitration. (Whataburger Restaurants LLC v. Cardwell, Case No. 08-13-00280-CV, (Tex. App. 8th, Feb. 26, 2016).
Robert T. Anderson began working for Xerox in 2007 and, when he alleged that the company engaged in unlawful discrimination on the basis of his age, disability, and sexual orientation, Xerox filed a motion in federal court to compel arbitration. (Anderson v. Xerox Corp., Case No. 3:14-cv-00532-KI, (D.Or. Aug. 21, 2014).