Ashley Walthour v. Chipio Windshield Repair, LLC

745 F.3d 1326, 22 Wage & Hour Cas.2d (BNA) 310, 2014 WL 1099286, 2014 U.S. App. LEXIS 5315
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 21, 2014
Docket13-11309
StatusPublished
Cited by56 cases

This text of 745 F.3d 1326 (Ashley Walthour v. Chipio Windshield Repair, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ashley Walthour v. Chipio Windshield Repair, LLC, 745 F.3d 1326, 22 Wage & Hour Cas.2d (BNA) 310, 2014 WL 1099286, 2014 U.S. App. LEXIS 5315 (11th Cir. 2014).

Opinion

HULL, Circuit Judge:

Plaintiffs-appellants Ashley Walthour and Kevin Chappell appeal the district court’s order compelling arbitration and dismissing their complaint filed against defendants-appellees Chipio Windshield Repair, LLC; Kingco Promotions, Inc.; Le-vaughn Hall; and several “John Does.” This appeal presents the question of whether an arbitration agreement, which waives an employee’s ability to bring a collective action under the Fair Labor Standards Act, is enforceable under the Federal Arbitration Act. After careful review and with the benefit of oral argument, we affirm the district court’s order compelling arbitration.

I. BACKGROUND

The underlying action arises out of plaintiffs Ashley Walthour’s and Kevin Chappell’s (“plaintiffs”) employment with defendants Chipio Windshield Repair; Kingco Promotions, Inc.; and Levaughn Hall (collectively the “Chipio defendants”).

In August 2011, plaintiffs began working for the Chipio defendants as ‘Window Repairers.” Window Repairers” perform “manual labor associated with repairing automobile windshields, work[] in Defen *1328 dants’ office, and driv[e] to locations where such window repairs [a]re made.” According to plaintiffs, the Chipio defendants did not pay plaintiffs the required minimum wage of $7.25 per hour or overtime wages for the hours they worked in excess of 40 hours per a week.

In October 2011, soon after the Chipio defendants hired plaintiffs, defendant Kingco Promotions entered into separate, identical arbitration agreements (the “Arbitration Agreements”) with plaintiffs. The Chipio defendants assert that Kingco Promotions was actually plaintiffs’ employer and that defendants Chipio Windshield Repair and Hall were not plaintiffs’ employer. However, for the purposes of this appeal and the Chipio defendants’ motion to compel arbitration, both the Chipio defendants and plaintiffs have treated all three defendants — Kingco Promotions, Chipio Windshield Repair, and Hall — collectively as plaintiffs’ employer. 1 And, plaintiffs and all three Chipio defendants have treated the arbitration agreement, signed by defendant Kingco Promotions, as applying to all three Chipio defendants.

Plaintiffs, each as “Employee,” and the Chipio defendants, as “Employer,” agreed that any kind of employment disagreement would be submitted to binding arbitration as follows:

all claims, disputes, controversies, or disagreements of any kind whatsoever arising out of or relating to any employment at-will agreement entered into between the parties, and/or Employee’s employment with Employer, and which may have occurred prior to or after entering into this arbitration agreement ..., shall be submitted to binding arbitration. Employer and Employee agree that the requirement to arbitrate shall also apply to any claim that may arise out of or relate to Employee’s employment and which Employee may assert against Employer’s employees, officers, directors, agents, suppliers or service providers, in their capacity as such....

In their Arbitration Agreements, plaintiffs also agreed that they may bring claims only individually, not as class members, and that they were giving up their rights to participate in a class or other representative action as follows:

The arbitrator will have no authority to consider a class action by one or more employees or otherwise preside over any form of a representative or class proceeding. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. The award of the arbitrator may be enforced in any court of competent jurisdiction. BY SIGNING THIS AGREEMENT, EMPLOYEE AND EMPLOYER ARE EACH GIVING UP HIS/HER/ITS RIGHT TO A JURY TRIAL AND HIS/ HER/ITS RIGHT TO PARTICIPATE IN A CLASS ACTION BECAUSE ALL CLAIMS WILL BE RESOLVED EXCLUSIVELY THROUGH ARBITRATION. EMPLOYEE AND EMPLOYER AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN HIS/HER/ITS INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING....

*1329 Plaintiff Walthour’s employment with the Chipio defendants ended in April 2012, and plaintiff Chappell’s employment with the Chipio defendants ended in December 2011.

On April 30, 2012, plaintiffs Walthour and Chappell brought a putative collective action against the Chipio defendants, pursuant to the Fair Labor Standards Act (“FLSA”) § 16(b), 29 U.S.C. § 216(b). Plaintiffs’ complaint alleges that the Chipio defendants (1) did not pay minimum wages to them, in violation of FLSA § 6, 29 U.S.C. § 206; (2) did not compensate them for the time that they worked in excess of 40 hours per week, in violation of FLSA § 7, 29 U.S.C. § 207; and (3) did not make adequate and accurate records of their wages and hours, in violation of FLSA §§ 11(c) and 15(a)(5), 29 U.S.C. §§ 211(c) and 215(a)(5) and 29 C.F.R. § 516.

After plaintiffs filed their complaint, the Chipio defendants filed (1) a motion to compel arbitration pursuant to the terms of the Arbitration Agreements and (2) a motion to dismiss the action or, alternatively, to stay the proceedings during the pendency of arbitration. Plaintiffs opposed the motions, arguing that their right to file a collective action under FLSA § 16(b) was a non-waivable, substantive right and that the Arbitration Agreements were invalid because they purported to waive that right. 2

The district court granted the Chipio defendants’ motions and dismissed plaintiffs’ complaint. The district court determined, inter alia, that, “in the absence of binding precedent holding that such a [waiver] provision is unenforceable as a matter of law,” the Arbitration Agreements should be enforced, in light of the FAA’s strong policy in favor of arbitration.

Plaintiffs timely filed this appeal.

II. DISCUSSION

A. The Federal Arbitration Act

The Federal Arbitration Act (“FAA”) generally governs the validity of an arbitration agreement. Caley v. Gulfstream Aerospace Corp., 428 F.3d 1359, 1367 (11th Cir.2005). 3 The FAA was “enacted in 1925 as a response to judicial hostility to arbitration.” CompuCredit Corp. v. Greenwood, 565 U.S.-,-, 132 S.Ct. 665, 668, 181 L.Ed.2d 586 (2012).

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745 F.3d 1326, 22 Wage & Hour Cas.2d (BNA) 310, 2014 WL 1099286, 2014 U.S. App. LEXIS 5315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashley-walthour-v-chipio-windshield-repair-llc-ca11-2014.