Prostek v. Lincare Inc.

District Court, E.D. California·Decided March 21, 2023·No. 1:22-cv-01530·Unknown

Opinion

JENNIFER PROSTEK, individually and CASE NO. 1:22-CV-1530 AWI BAM on behalf of others similarly situated and aggrieved, ORDER ON DEFENDANTS’ MOTION Plaintiff TO COMPEL ARBITRATION

v. (Doc. No. 4) SERVICES, INC., and DOES 1-50, inclusive,

Defendants

This is a putative class action lawsuit brought by Plaintiff Jennifer Prostek against her former employers, Defendants Lincare, Inc. (“LI”) and Lincare Pharmacy Services, Inc. (collectively “Defendants”). Defendants removed this case from the Tulare County Superior Court. Prostek alleges various violations of the California Labor Code (e.g. failure to pay overtime, failure to provide required meal periods, failure to pay minimum wages, etc.), California’s Unfair Competition Law (“UCL”) (Cal. Bus. & Prof. Code § 17200), and California’s Private Attorney General Act (“PAGA”) (Cal. Lab. Code § 2699). Currently before the Court is Defendants’ motion to compel arbitration. For the reasons that follow, Defendants’ motion will be granted, all but one cause of action will be sent to arbitration, and the remainder of this case will be stayed. From the Complaint and the declarations of the parties, Defendants co-employed Prostek. Prostek began working for Defendants in May 2021 as a customer service representative. On her first day of employment, Defendants’ office manager Arlene Eaton gave Prostek a stack of paperwork to sign. The stack consisted of numerous documents which Prostek believed she had to sign in order to start working. The stack included training forms on equipment like wheelchairs and oxygen tanks. Prostek has no recollection of seeing or signing an arbitration agreement. Prostek declares that while she was revieing and signing the paperwork, Eaton talked incessantly about her personal life, which distracted Prostek. Prostek declares that Eaton’s talking distracted her and made it impossible for her (Prostek) to properly review the paperwork. Eaton only stopped talking momentarily to instruct Prostek to sign documents, and when Prostek signed one document, Eaton would immediately give her another document. Eaton said that the documents had to be signed that day and remarked at one point that “we need to hurry up.” Prostek declares that this made her feel rushed. No one reviewed any of the paperwork that Prostek was signing or explained to Prostek what any of the paperwork meant, with the exception of a training checklist and safety procedures. Prostek declares that Defendants did not allow her time to carefully review the documents or consult with an attorney before signing and did not provide her with a copy of the paperwork that she signed. Included within the stack of papers was a document entitled “Mutual Agreement to Arbitrate Between [LI] and Employee” (“the Arbitration Agreement”). See Adams Dec. Ex. 1. This Agreement is a ten-page document, is printed in a legible 14-point (or so) font, and contains nine sections and some subsections. See id. In relevant part, the Arbitration Agreement reads: The parties recognize that differences may arise between them in connection with the employment relationship, and the services and consideration to be provided thereby, and wish to adopt a dispute resolution procedure that will avoid the delay, expense and burden of litigation in the civil court system and, by this Agreement, mutually waive their right to pursue “Covered Claims” . . . in civil Court. By entering this Agreement, both Parties intend to gain the advantage of a speedy, economical, and impartial dispute-resolution procedure.

1. Binding Arbitration

In the event that the Parties are unable to resolve any dispute arising out of, relating in good faith to reach a negotiated resolution, such dispute(s) shall be resolved through binding arbitration conducted in accordance with this Agreement. Each Party hereto hereby consents to the exclusive personal subject matter jurisdiction of the arbitration proceedings provided in this Agreement. This Agreement shall set forth the full and complete agreement between the Parties concerning the matters addressed herein and shall supersede all prior oral or written agreements concerning these matters. …….. 3. Covered Claims Subject to Arbitration The term “Covered Claims” includes all claims or disputes arising out of, relating to, or in connection with the employment relationship, and any services and consideration provided thereby, that Lincare may have against the Employee, or that the Employee may have against Lincare . . . . However, Covered Claims does not include those claims set for in the Excluded Claims section of this Agreement.1 Covered Claims include, but are not limited to, any dispute of any nature relating to the employment relationship, including . . . failure to pay wages, bonuses or any other form of compensation; failure to provide rest or meal periods; failure to pay or pay on time; wage statement violations . . . . Unless expressly excluded . . ., Covered Claims shall include any and all procedural, substantive and gateway issues, including, without limitation, any dispute between the Parties relating to the scope of the arbitrator’s powers, the interpretation or enforceability of this Agreement or any part thereof, or the arbitrability of any dispute. ……. 5. Arbitration Is the Exclusive Remedy Arbitration pursuant to this Agreement shall be the exclusive remedy for resolving any such arbitrable disputes or Covered Claims, and the Parties mutually waive their right to trial before a judge or jury in federal or state court in favor of arbitration under this Agreement. . . .

This Agreement shall be governed and construed in accordance with the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq. . . . 6. Class Action Waiver All Covered Claims under this Agreement shall be submitted and arbitrated on an individual basis only. The Parties expressly waive any right to submit, initiate or participate in any class, collective, consolidated, representative, or joint action involving any employee . . . of Lincare, whether as a plaintiff, claimant, or member of an alleged class or group, regardless of whether the action is filed as a lawsuit, arbitration, or any other type of proceeding. In addition, the Parties mutually waive their right to bring, maintain, participate in or receive money from any class, collective or representative proceeding.

In the event that a dispute arises with respect to the interpretation or enforceability 1 The arbitration agreement excluded disputes relating to the meaning, interpretation, or enforceability of a class action waiver; state or federal disability insurance or workers’ compensation benefits; ERISA claims; administrative competent jurisdiction located in the State of California, and not by arbitration. . . .

….

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Prostek v. Lincare Inc., (E.D. Cal. 2023).

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