Cooley v. Servicemaster Co. LLC

CourtDistrict Court, E.D. California
DecidedAugust 17, 2021
Docket2:20-cv-01382
StatusUnknown

This text of Cooley v. Servicemaster Co. LLC (Cooley v. Servicemaster Co. LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooley v. Servicemaster Co. LLC, (E.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 TYRON COOLEY, on behalf of himself No. 2:20-cv-01382-MCE-DB and all others similarly situated, 12 Plaintiff, 13 MEMORANDUM AND ORDER v. 14 THE SERVICEMASTER COMPANY, 15 LLC, TERMINIX INTERNATIONAL, INC., THE TERMINIX 16 INTERNATIONAL COMPANY LIMITED PARTNERSHIP, and DOES 1 17 through 50, inclusive, 18 Defendants. 19 20 Plaintiff Tyron Cooley, on behalf of himself and all others similarly situated, 21 (“Plaintiff”) seeks relief from Defendants The ServiceMaster Company, LLC, Terminix 22 International, Inc., The Terminix International Company Limited Partnership, and DOES 23 1 through 50, inclusive (collectively, “Defendants” or “Terminix”) for violation of Cal. Lab. 24 Code §§ 201-204; Cal. Lab. Code §§ 201-203, 226, 226.7, 510, 512, 1194, 2699 et seq., 25 2751, and 2802; applicable Industrial Welfare Commission Wage Orders; Cal. Bus. & 26 Prof. Code § 17200, et seq.; and Labor Code Private Attorneys General Act of 2004 27 (“PAGA”). See Not. of Removal, Exhibit A, Jul. 8, 2020, ECF No. 1. 28 /// 1 On May 8, 2020, Plaintiff filed a class and representative action Complaint in 2 Sacramento Superior Court against Defendants for alleged employment law violations 3 arising from his employment with Terminix. In his Complaint, “Plaintiff asserted claims 4 for: (1) failure to provide wages due upon termination; (2) failure to provide meal periods; 5 (3) failure to provide rest periods; (4) failure to pay overtime; (5) failure to provide 6 accurate wage statements; (6) failure to indemnify necessary business expenses; 7 (7) violations of the California Business and Professions Code sections 17200 et seq.; 8 and (8) civil penalties under PAGA.” Mot. to Compel Arb. at 5. On July 8, 2020, 9 Defendants timely removed the case to this Court. Not. of Removal, ECF No. 1. 10 Presently before the Court are Plaintiff’s Motion to Remand, ECF No. 5, and 11 Defendants’ Motion to Dismiss, Compel Arbitration, and Stay Proceedings, ECF No. 7, 12 both of which are fully briefed. For the reasons set forth below, Plaintiff’s Motion to 13 Remand is DENIED and Defendants’ Motion to Compel Dismiss, Arbitration, and Stay 14 Proceedings is GRANTED.1 15 BACKGROUND2 16

17 Plaintiff was employed by Defendants as a field representative or “outside sales 18 representative” from approximately November 2014 to April 2019. During the relevant 19 period, Plaintiff alleges he was subject to violations of the California Labor Code and 20 California Business and Professions Code and that civil penalties are warranted under 21 PAGA. 22 According to Defendants, Plaintiff’s employment with them was subject to their 23 mandatory arbitration policy, the We Listen Plan (“Agreement”), which they purportedly 24 provided to employees at least three separate times. First, during the onboarding 25

1 Because oral argument will not be of material assistance, the Court ordered this matter 26 submitted on the briefs. E.D. Cal. Local R. 230(g).

27 2 Unless stated otherwise, the following recitation of facts is taken from Defendants’ Not. Of Removal, Ex. A, ECF No. 1, Defendants’ Motion to Compel Arbitration, ECF No. 7, and Plaintiff’s 28 Opposition to Defendants’ Motion to Compel Arbitration, ECF No. 9. 1 process, Defendants purportedly provided their employees with the Associate 2 Handbook, which contained a summary of the Agreement on pages 11 through 13 in the 3 same formatting and font style as the rest of the Associate Handbook. Employees, 4 including Plaintiff, then sign a Handbook Acknowledgement Form, which states: 5 I also acknowledge receiving information on how to utilize ServiceMaster’s mandatory dispute resolution program, We 6 Listen, to resolve any and all work-related disputes/concerns and its requirement to arbitrate such disputes if they are not 7 resolved. 8 Glass Decl., Ex. B (2018 Plan) at 18, ECF No. 7-2. In bold and capitalized text, 9 however, that same form also provides: 10 I ACKNOWLEDGE THAT THE HANDBOOK IS NOT AN EMPLOYMENT CONTRACT AND IS NOT INTENDED TO, 11 NOR DOES IT, CREATE A CONTRACT OF ANY KIND. 12 Id. 13 Second, Defendants contend they provide their employees with a hard copy of 14 the Agreement itself. Id. Employees were not required to acknowledge or sign that 15 Agreement, and Plaintiff contends that it, in fact, was never provided to him. ECF No. 9 16 at 12. Regardless, the Agreement is purportedly intended to cover the following: 17 For purposes of this Plan, a Covered Dispute means all claims or disputes arising out of or relating to my employment, 18 termination of employment or application for employment that I or the Company could otherwise have resolved in a 19 court. . . The Plan covers the following legal claims that either the Company or I could bring relating to my employment 20 relationship with the Company, including, but not limited to, those related to: . . . (vii) claims under federal, state or local 21 law regarding wages and other compensation, benefits, reimbursement of expenses . . . and associated laws. 22 23 ECF No. 7-2 at Ex. G at 31. 24 Third, Defendants aver that they had employees electronically review and 25 acknowledge receipt of several documents, including the Agreement, in its then-HRIS 26 system known as “myHR.” Once logged into the portal, Defendants’ employees were 27 instructed to “Read the [Agreement], and then select ‘Done’ to move to the next page.” 28 Once the employee selected the link to the Agreement, a copy of the Agreement was 1 displayed in PDF format, which the employee could save electronically to his/her 2 computer or print in hard copy. The first paragraph of the Agreement in the myHR portal 3 states: 4 The Plan includes a mutual agreement to arbitrate my individual covered Disputes which is the exclusive, final 5 and binding remedy for both the Company and me and includes a class action waiver. I understand the Company 6 nor I will be allowed to bring any Disputes to a court or jury for a resolution except as set forth in the Plan. 7 8 Id. at Ex. C at 20. 9 After closing or minimizing the We Listen document, the employee was returned 10 to a “Checklist screen” and shown a message that rest: “By clicking ‘Done’ you 11 acknowledge that you have been given access to the [Agreement] and that it describes 12 important information about the company and that you should consult your supervisor, 13 manager or human resources about any questions regarding information contained in 14 the [Agreement].” (emphasis added). After acknowledging receipt of the Agreement on 15 November 18, 2014, Plaintiff continued to work for Defendants until April 3, 2019. 16 In November 2018, Defendants rolled out the 2018 version of the Agreement 17 (“2018 Agreement”) in conjunction with the prior version of the Agreement. On 18 December 21, 2018, Defendants emailed the 2018 Agreement to employees via email 19 and posted the 2018 Agreement to the company intranet as well as Defendants’ online 20 forum. Moreover, these corporate communications stated that “continued employment 21 ‘constitutes an implied agreement to use this process.’” Additionally, Defendants’ branch 22 managers distributed copies of the 2018 Agreement to all branch employees. The 2018 23 Agreement became effective on January 1, 2019. 24 Plaintiff maintains, however, that he never received the Handbook or the 25 communications regarding the 2018 Agreement roll out from Defendants. Plaintiff further 26 asserts that he never received the document from his branch manager. Furthermore, 27 Plaintiff alleges that he did not see any postings of the 2018 Agreement on the 28 company’s intranet. Plaintiff further contends that all employees had the same intranet 1 login information.

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Bluebook (online)
Cooley v. Servicemaster Co. LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooley-v-servicemaster-co-llc-caed-2021.