Price v. NCR Corp.

908 F. Supp. 2d 935, 2012 WL 6103205, 2012 U.S. Dist. LEXIS 176166
District Court, N.D. Illinois·Decided December 10, 2012·No. No. 12 C 3413·Published·Cited by 8 cases

Opinion

MEMORANDUM OPINION AND ORDER

RUBEN CASTILLO, District Judge.

Mark Price (“Plaintiff’) brings this class action against NCR Corporation (“Defendant”) alleging violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq.; the Illinois Minimum Wage Law (“IMWL”), 820 111. Comp. Stat. 105/1 et seq.; and the Illinois Wage Payment and Collection Act (“IWPCA”), 820 Ill. Comp. Stat. 115/1 et seq. (R. 1, Compl.) Presently before the Court is Defendant’s motion to compel arbitration and stay these proceedings pursuant to the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq. (R. 12, Def.’s Mot.) For the reasons set forth herein, the Court grants Defendant’s motion.1

RELEVANT FACTS

Defendant provides computer products and services throughout the nation, including Illinois. (R. 1, Compl. ¶ 7.) Defendant keeps track of employee wages and hours and maintains employee compensation policies for all employees'. (Id. ¶ 9.) Plaintiff and putative class members were employed by Defendant and classified by Defendant as “non-exempt customer engineers” or “technicians.” (Id. ¶¶ 5-6.) Plaintiff and putative class members had similar job descriptions, responsibilities, and compensation plans. (Id. ¶ 8.) Plain[938] tiff alleges that Defendant violated the FLSA, the IMWL, and the IWPCA by failing to: (1) maintain correct records of the hours he and putative class members worked; and (2) compensate Plaintiff and putative class members appropriately for scheduled overtime hours, extra hours worked before and after scheduled shifts, and meal breaks. (Id. 1Í1Í11-13.) Plaintiff also alleges that Defendant consciously acted in this manner in order to reduce its labor and payroll costs. (Id. ¶¶ 14-15.)

According to Defendant, Plaintiff and Defendant entered into a “Mutual Agreement to Arbitrate All Employment Related Claims” (“Agreement”) in December 2007. (R. 14, 'Def.’s Mem. at 2; R. 14, Def.’s Mem., Ex. B-l, Agreement.) Pursuant to the Agreement, the parties must submit to binding arbitration to resolve any dispute that cannot be resolved through “voluntary internal processes.” (R. 14, Def.’s Mem., Ex. B-l, Agreement.) Issues that proceed to binding arbitration include “every possible claim (other than workers compensation claims or claims for benefits covered by the Employee Retirement Income Security Act) arising out of or relating in any way to [Plaintiffs] employment” with' Defendant. (Id) According to the terms of the Agreement, arbitration hearings “will by conducted by the American Arbitration Association (the “AAA”) under the AAA’s rules.” (Id.) The Agreement instructs that “[a]ny issue or dispute concerning the interpretation or enforceability of this Agreement shall be resolved by the arbitrator.” (Id.) Additionally, the Agreement states that the parties “intend for this Agreement to be interpreted broadly to allow arbitration of as many disputes as possible.” (Id.)

PROCEDURAL HISTORY

On May 4, 2012, Plaintiff filed his complaint with the Court in his individual capacity and on behalf of similarly situated individuals. (R. 1, Compl.) Plaintiff brings three claims against Defendant. In Counts I and II, brought on behalf of himself and others similarly situated, Plaintiff alleges that Defendant violated the FLSA and the IMWL by failing to maintain accurate records and pay overtime wages of one-and-a-half times his hourly wage. (Id. ¶¶ 37-41, 50-52.) In Count III, Plaintiff alleges that Defendant violated the IWPCA by failing to pay him and putative class members on a timely basis, taking improper deductions for meal breaks, and failing to pay overtime wages and other benefits. (Id. ¶¶ 58-62.) Plaintiff requests judgment against Defendant for willfully violating the FLSA, the IMWL, and the IWPCA. (Id. ¶ E.)

On June 13, 2012, Defendant moved to compel arbitration and stay these proceedings. (R. 12, Def.’s Mot.) Defendant asserts that the Agreement requires Plaintiff to submit to binding arbitration and eliminates the Court’s subject matter jurisdiction during the pendency of the arbitration. (R. 14, Def.’s Mem. at 2-3.) On July 12, 2012, Plaintiff filed a response stating that he “does not oppose Defendant’s motion and agrees to pursue , all claims through arbitration.” (R. 20, Pl.’s Resp.) Defendant filed a reply on July 16, 2012, arguing that “Plaintiffs response is misleading and constitutes an improper end-run around having this Court determine the scope of arbitration.” (R. 21, Def.’s Reply at 1.) Defendant requests that the Court specifically exclude Plaintiffs class claims from arbitration, arguing that because the Agreement is silent as to class arbitration, class arbitration is prohibited. (Id.) On July 24, 2012, Plaintiff filed a surreply requesting that the Court grant Defendant’s motion to compel arbitration and permit the arbitrator to determine whether Plaintiff may bring his class claims or, alternatively, grant Defendant’s motion [939] and specify that Plaintiff may pursue both his individual and his class claims in arbitration. (R. 26, Pl.’s Sur-Reply at 1.) Plaintiff argues that the Agreement is broadly drafted and allows arbitration of class claims, not just his individual claims. (Id. at 3-4.)

LEGAL STANDARD

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Price v. NCR Corp., 908 F. Supp. 2d 935, 2012 WL 6103205, 2012 U.S. Dist. LEXIS 176166 (N.D. Ill. 2012).

908 F. Supp. 2d 935 (Price v. NCR Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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