Ninth Circuit: Ex-Employee Must Arbitrate Claims that Occurred Prior to Entering into Arbitration Agreement
The Ninth Circuit Court of Appeals[1] recently ruled that an employee’s arbitration agreement was enforceable as to complaints of sexual harassment and retaliation against her supervisors that occurred before she entered into the arbitration agreement. [2]
A former Tinder, Inc. employee alleged that, after she made complaints about her supervisors’ sexual harassment, the company sent its employees a mandatory arbitration agreement as a condition of continued employment. The employee signed the arbitration agreement, but was fired two months later. The employee argued that her harassment and retaliation case should not be sent to arbitration because the agreement did not unambiguously state that it encompassed claims that arose before the effective date of the agreement.
The Ninth Circuit rejected the employee’s argument and affirmed the district court’s decision to send her case to arbitration. The Court found that the arbitration provision to which the employee agreed stated that it applied to “all claims or controversies arising out of or in connection with [the employee’s] application with, employment with, or termination from, the Company,” which would include her pre-existing claims of harassment and retaliation. The Court held that the arbitration agreement's reference to claims arising out of or in connection with her application for employment necessarily relates to and establishes an intent to cover claims that had accrued prior to the effective date of the arbitration agreement.
Takeaway
As employers implement arbitration agreements for their employees, this decision highlights the importance of ensuring the arbitration agreements contain language broad enough to encompass current employees’ potential disputes arising before the agreement’s effective date, otherwise, employers may be forced to defend the employee’s pre-arbitration agreement claims in court and post-arbitration agreement claims in arbitration. Please contact the attorneys at Campbell Litigation, P.C. for assistance in reviewing and implementing arbitration agreements.
[1] The Ninth Circuit Court of Appeals hears appeals from federal courts in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington State.
[2] Elizabeth Sanfilippo v. Match Group LLC et al., Case No. 20-55819 (9th Cir. Sept. 28, 2021).