Arbitration Provision In Employment Agreement Upheld In Employee’s Age Discrimination Action
Employer moved to compel arbitration, in former employee’s age discrimination action, based on the arbitration provision in the employment agreement that specifically included claims of age discrimination and the court stayed the case pending the outcome of the arbitration. Motion granted.
Plaintiff was terminated after working for employer for thirteen years. He was 53 years old, believed he was terminated due to his age and sued employer under the ADRA and the PHRA. Employer moved to compel arbitration. Plaintiff’s employment agreement contained a three-stage procedure for resolving disputes in the work place with arbitration as the third stage. The arbitration provision specifically included discrimination based on age. The court ordered limited discovery on the issue of arbitrability.
Plaintiff argued he did not manifest an intention to be bound by the arbitration agreement because it was unclear whether he signed the employee agreement in question. However, employer’s supplemental declaration showed that employer trained plaintiff on the arbitration provision and trainer and employee both signed the agreement containing the provision. Plaintiff also asserted that in 2005, the terms of the employee agreement were updated and that version superseded the version he signed in 2000. The court found that plaintiff was bound by the signed 2000 agreement and its arbitration provision was broad and it specifically included claims of age discrimination. The court found the agreement was a valid and enforceable contract which required plaintiff to arbitrate his claims. The court stayed the case and placed it in civil suspense pending the outcome of arbitration.
Reference: Digest of Recent Opinions, Pennsylvania Law Weekly, 41 PLW 794 (August 21, 2018), Schwartz v. The Ritz-Carlton Hotel Co., LLC, PICS Case No. 18-0985 (E.D. Pa. Aug. 2, 2018)
Kindly visit our Employment Law website or contact one of our Employment Law Attorneys, Philadelphia or Business & Commercial Litigation Attorneys, Philadelphia at 215-977-8200 for more information on this topic.