Banks v. Waitr Holdings Inc

CourtDistrict Court, W.D. Louisiana
DecidedDecember 17, 2019
Docket2:19-cv-00898
StatusUnknown

This text of Banks v. Waitr Holdings Inc (Banks v. Waitr Holdings Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banks v. Waitr Holdings Inc, (W.D. La. 2019).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAKE CHARLES DIVISION

JANNA M. BANKS CASE NO. 2:19-CV-00898

VERSUS JUDGE TERRY A. DOUGHTY

WAITR HOLDINGS, INC. MAG. JUDGE KATHLEEN KAY

RULING Pending before the Court is Defendant Waitr Holdings, Inc.’s (“Waitr”) Motion to Compel Arbitration and Dismiss Collective Action Complaint [Doc. No. 4]. Plaintiff Janna M. Banks (“Banks”) filed an opposition memorandum. [Doc. No. 7]. Waitr filed a reply memorandum. [Doc. No. 10]. For the following reasons, the Motion to Compel Arbitration and Dismiss Collective Action Complaint is GRANTED IN PART AND DENIED IN PART. I. FACTS AND PROCEDURAL HISTORY Waitr is a Louisiana-based technology company that operates an online food order and delivery platform that allows its patrons to use mobile or desktop applications to order food and have it delivered from participating restaurants. On September 27, 2018, Banks accepted an offer to work for Waitr as a Mobile Restaurant Success Manager. Banks worked in that position from October 5, 2018, until October 2019. She was assigned to the Albany, Georgia and surrounding areas. The primary job responsibilities for Mobile Restaurant Success Managers included (a) “onboarding” new restaurants, (b) instructing restaurant staff in Waitr operations and processes, (c) demonstrating how to process Waitr orders using iPad, (d) inputting and updating menu information, (e) providing marketing suggestions, (f) record keeping, and (g) receiving and reporting complaints from the restaurants. In connection with and in consideration for her employment, Banks signed an offer letter. That offer letter contained the following provision: In the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree that (i) any and all disputes between you and the Company shall be fully and finally resolved by binding arbitration, (ii) you are waiving any and all rights to a jury trial but all court remedies will be available in arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall issue a written opinion and (iv) the arbitration shall provide for adequate discovery.

[Doc. No. 4-2, Declaration of Amy Behne (“Behne Declaration”), Exh. 1, ¶ 5 & Tab A]. On November 16, 2018, Waiter distributed an Agreement to Arbitrate Claims. This agreement was emailed to Banks at her @waitrapp.com email address. That Agreement provides as follows: In consideration of the at-will employment relationship between Waitr, Inc. and/or Waitr Holdings, Inc. (“Employer”) and Employee and the mutual desire of the parties to enter into this Agreement to Arbitrate Claims (“Agreement”), the parties hereby agree that any and all disputes, claims or controversies between the parties, including but not limited to any dispute arising out of or relating to this Agreement, the employment relationship between the parties, or the formation or termination of the employment relationship, or which arise after the termination of the employment relationship, which are not resolved by their mutual agreement shall be resolved by final and binding arbitration by a neutral arbitrator.

. . .

The claims covered by this Agreement include, but are not limited to, claims for . . . violation of any local, state, or federal constitution, statute, law, ordinance or regulation . . . wages, overtime, premiums, gratuities, tips, service/administrative charges, or any other compensation due; penalties . . . .

[Doc. No. 4-2, Behne Declaration, Exh. 1, ¶ 7 & Tab B]. The Agreement to Arbitrate Claims further provides: I ACKNOWLEDGE THAT I HAVE HAD AN OPPORTUNITY TO REVIEW AND ASK QUESTIONS CONCERNING THIS AGREEMENT AS A CONDITION OF EMPLOYMENT. I UNDERSTAND THAT I AM PERMITTED TO TAKE THIS AGREEMENT WITH ME AND REVIEW IT WITH AN ATTORNEY OF MY CHOICE IF I SO DESIRE. I FURTHER UNDERSTAND THAT BY CONTINUING TO WORK FOR COMPANY, MY CONTINUED EMPLOYMENT WILL BE CONSIDERED ACCEPTANCE OF THE AGREEMENT, EVEN WITHOUT SIGNATURE.

Id. (emphasis in original). The Agreement to Arbitrate Claims expressly applies only to disputes that otherwise would be resolved in a court of law; it does not extend to claims or matters that may be brought before an administrative agency or purport to limit the employee’s rights before administrative agencies. Id. Pursuant to the Agreement to Arbitrate Claims, arbitration proceedings are to be held within geographic proximity to the employee; the arbitrator is to be selected by mutual agreement of the parties; and Waitr agrees to pay the arbitrator’s and arbitration fees. Id. The Agreement to Arbitrate Claims provides for the same rights to conduct discovery, bring dispositive motions, and submit evidence and call witnesses that the parties would enjoy in a court of law. Id. However, the Agreement to Arbitrate Claims also provides: BY EMPLOYEE’S CONTINUED EMPLOYMENT WITH THE COMPANY, THE EMPLOYER AND EMPLOYEE AGREE THAT EACH MAY BRING AND PURSUE CLAIMS AGAINST THE OTHER ONLY IN THEIR INDIVIDUAL CAPACITIES, AND MAY NOT BRING, PURSUE OR ACT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, REPRESENTATIVE OR COLLECTIVE PROCEEDINGS. THE PARTIES FURTHER AGREE THAT NEITHER PARTY MAY BRING, PURSUE, OR ACT AS A PLAINTIFF OR REPRESENTATIVE IN ANY PURPORTED REPRESENTATIVE PROCEEDING OR ACTION, OR OTHERWISE PARTICIPATE IN ANY SUCH REPRESENTATIVE PROCEEDING OR ACTION OTHER THAN ON AN INDIVIDUAL BASIS EXCEPT TO THE EXTENT THIS PROVISION IS UNENFORCEABLE AS A MATTER OF LAW. Id. (emphasis in original). Banks did not sign the Agreement to Arbitrate Claims, but does not deny that she received it. Banks never made any objection to or refused any of the terms in the offer letter or the Agreement to Arbitrate Claims. On July 12, 2019, Banks filed her “FLSA Overtime Complaint” in this Court alleging that Waitr has committed violations of the Fair Labor Standards Act, 29 U.S.C. §§ 201- 219 (“FLSA”). [Doc. No. 1]. Specifically, Banks contends that Waitr improperly classified her as an employee exempt from the FLSA overtime provisions and failed to pay her overtime compensation for hours worked in excess of 40 each work week. Banks seeks compensation, benefits, damages, attorneys’ fees and costs, interest, and other relief. In addition to her

individual relief, however, Banks also seeks to represent a collection of “similarly situated employees” in a collective action under 29 U.S.C. § 216(b). On October 1, 2019, Waitr filed the instant motion. The motion is now fully briefed, and the Court is prepared to rule. II. LAW AND ANALYSIS The Federal Arbitration Act, 9 U.S.C. §§ 1, et seq. (“FAA”), is the substantive law controlling the validity and enforcement of arbitration agreements. Walton v. Rose Mobile Homes LLC, 298 F.3d 470, 473 (5th Cir. 2002). The FAA provides that written agreements to settle controversies by arbitration “shall be valid, irrevocable, and enforceable, save upon such

grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2; see also Walton, 298 F.3d at 473. Additionally, “[a] party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court . . . for an order directing that such arbitration proceed in the manner provided for in such agreement.” 9 U.S.C.

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Bluebook (online)
Banks v. Waitr Holdings Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banks-v-waitr-holdings-inc-lawd-2019.