Tag: discrimination claims

Fifth Circuit Upholds Agreement to Arbitrate Discrimination Claims The U.S. Court of Appeals for the Fifth Circuit has ruled in favor of an employer's motion to compel arbitration for an employee's claims of discrimination based on his race and place of origin pursuant to a valid arbitration agreement that addressed employment disputes. In this case, the plaintiff was employed by the defendant, which operated as a telecommunications company, starting in 2007. Beginning in 2017, the employer created a new legal dispute resolution program that contained a provision to arbitrate certain disputes. The employer notified employees of this new program through e-mail. The notice informed employees that for a 30 day period, they could choose to opt-out of this program; however, if they chose not to actively opt-out, they would be automatically enrolled. Within the notice were links that offered more information regarding the program as well as how employees could choose to opt-out of it. However, the plaintiff did not choose to opt-out of the program and thus was automatically enrolled. After the opt-out period of the program closed, the plaintiff claimed that he was subjected to discrimination based on his race and national origin. On May 8th, 2019, the plaintiff was fired for what he claims to be pretextual reasons. In response, the plaintiff filed a lawsuit against the employer, claiming violation of Title VII of the Civil Rights Act of 1964. The employer filed a motion to compel arbitration pursuant to the program, which the plaintiff had automatically consented to. The court found, based upon evidence submitted by the employer, that the employee had, in fact, received the e-mail and had clicked on it several times. As a result, the district court concluded that the employee had been informed of the program and had voluntarily not opted out and granted the motion to compel arbitration. The plaintiff appealed the decision; however, the court found that the employee had failed to assert that his claims were not covered by the arbitration agreement's terms. As a result, the Fifth Circuit affirmed the lower court's decision. Employer Takeaways As this case shows effective notifications and record keeping are critical to effectively introducing a new program or modifying terms of employment. Through effectively documenting that an employee has received proper notice of a new policy and accepted it, an employer can ensure that it will be upheld in court. This is particularly crucial for arbitration agreements which have faced challenges in many courts in recent years. Discover the benefits of Pre-employ’s seamless background checks for your business. Contact a Sales representative today. STAY COMPLIANT WITH YOUR BACKGROUND CHECKS

Tag: discrimination claims

Fifth Circuit Upholds Agreement to Arbitrate Discrimination Claims

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