Suqin Zhu v. Hakkasan NYC LLC

291 F. Supp. 3d 378
CourtDistrict Court, S.D. Illinois
DecidedNovember 28, 2017
Docket16 Civ. 5589 (KPF)
StatusPublished
Cited by22 cases

This text of 291 F. Supp. 3d 378 (Suqin Zhu v. Hakkasan NYC LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suqin Zhu v. Hakkasan NYC LLC, 291 F. Supp. 3d 378 (S.D. Ill. 2017).

Opinion

KATHERINE POLK FAILLA, United States District Judge

Defendants move, pursuant to the Federal Arbitration Act, 9 U.S.C. §§ 1 to 16 (the "FAA"), to compel arbitration of Plaintiffs' claims alleging violations of the Fair Labor Standards Act, 29 U.S.C. §§ 201 to 219 (the "FLSA"), and the New York Labor Law (the "NYLL") on a class and collective action basis, as well as individual discrimination claims under the New York State Human Rights Law (the "NYSHRL") and New York City Human Rights Law (the "NYCHRL"). What is more, Defendants request that this Court order arbitration on an individual basis. Plaintiffs oppose the motion, claiming that the arbitration agreement that each signed (the "Arbitration Agreement" or "Agreement") is unconscionable because (i) Plaintiffs were told to sign the Agreement immediately upon viewing it, without receiving translated versions in Plaintiffs' native languages, and (ii) the Agreement contains a confidentiality clause that, in Plaintiffs' view, is invalid under Cheeks v. Freeport Pancake House , 796 F.3d 199 (2d Cir. 2015), and dissuades employees from bringing claims against Defendants. In the *383alternative, Plaintiffs ask the Court to strike the confidentiality clause and to order that arbitration proceed on a collective basis.

As detailed in the remainder of this Opinion, the Court finds that the Arbitration Agreement is valid and enforceable and that Plaintiffs' claims fall within its scope. Accordingly, the Court grants Defendants' motion to compel arbitration. However, because the availability of collective arbitration is not a "question of arbitrability," the Court reserves the question for the arbitrator. The Court similarly finds that Plaintiffs' claim that the confidentiality clause is invalid under Cheeks is not a "question of arbitrability" and must therefore be decided in the first instance by the arbitrator.

BACKGROUND1

A. Factual Background

1. Plaintiffs' Employment at Defendants' Restaurant

Plaintiff Suqin Zhu was employed by Defendants as a sous chef at their restaurant-located at 311 West 43rd Street in Manhattan-from February 15, 2012 to July 1, 2016. (Compl. ¶¶ 9, 18). Nelson Leung was employed by Defendants as a sous chef starting in January 2012. (Leung Decl. ¶ 2). Lip Kuen Moy was employed by Defendants as a kitchen prep worker starting in January 2012. (Moy Decl. ¶ 2).

2. Plaintiffs' Alleged Violations of the FLSA, NYLL, NYCHRL, and NYSHRL

On July 12, 2016, Plaintiff Zhu signed a Consent to Sue Under Federal Fair Labor Standards Act. (Compl., Ex. 1). The next day-July 13, 2016-Zhu filed a Collective Action Complaint against Defendants Hakkasan NYC LLC and Hakkasan Holdings, LLC. (Compl.). Plaintiff Zhu alleged that: (i) between March 17, 2013, and July 1, 2016, Defendants failed to provide Zhu with overtime compensation for time worked beyond 40 hours each workweek (id. at ¶ 29); (ii) "Plaintiff's workdays frequently lasted longer than 10 hours," but "Defendants did not pay Plaintiff 'spread of hours' premium for every day in which she worked over 10 hours" (id. at ¶¶ 37, 38); (iii) Defendants misclassified Plaintiff and other members of the contemplated class as salaried, exempt employees (id. at ¶ 35); (iv) "Defendants did not provide Plaintiff with proper written notice about the terms and conditions of her employment upon hire [or upon pay increases] in relation to their rate of pay, regular pay cycle[,] and rate of overtime pay" (id. at ¶ 38); (v) Defendants failed to provide detailed paystub information every payday (id. at ¶¶ 80-81); (vi) Zhu, who is Han Chinese, was required to work substantially more hours for the same pay as her Caucasian colleagues who performed similar work functions (id. at ¶¶ 41-43); and (vii) Defendants provided Caucasian employees with more paid holidays than they did to Chinese employees (id. at ¶ 45).

Plaintiff Zhu brought these claims on behalf of herself and "all persons who are or were formerly employed by Defendants as a sous chef and other similarly situated current and former employee[s] holding comparable positions but different titles, at any time from July 30, 2012 to the entry of *384judgment in this case." (Compl. ¶ 46). On November 8, 2016, Leung and Moy signed consent to sue forms similar to that originally executed by Zhu. (Dkt. # 21, 22).

3. Plaintiffs' Arbitration Agreement

As a condition of their employment by Defendants, Plaintiffs signed a Dispute Resolution/Arbitration Agreement. (Arb. Agmt.). Zhu executed the Agreement on February 15, 2012; Moy, on February 13, 2012; and Leung, on January 26, 2012. (Id. ). In declarations filed with the Court, Zhu, Leung, and Moy all stated that, "[around the start of my employment] I was provided with a document in English that resembles the arbitration agreement at issue." (Zhu Decl. ¶ 5, Leung Decl. ¶ 5, Moy Decl. ¶ 5). All further stated that, "I was asked by a Chinese speaking secretary at Hakkasan to sign the document without first having the document translated to me[; t]he secretary informed me that the document must be signed immediately[; and b]efore signing the document I never had any opportunity to determine its contents, or understand its implications." (Zhu Decl. ¶¶ 6-7, Leung Decl. ¶¶ 6-7, Moy Decl. ¶¶ 6-7).

In the Arbitration Agreement, each Plaintiff agreed to "waive [his/her] right to a court and/or jury trial and agree[d] that disputes relating to [his/her] employment, or the termination of such employment, shall be decided by a mutually agreed-upon Arbitrator in final and binding arbitration." (Arb. Agmt. 1). Each further agreed to:

bring any and all claims [he/she] may wish to assert against the Company, other than those claims specifically excluded below, only through arbitration. Such claims, whether based upon statute, regulation, contract, tort, or other common law principles, include but are not limited to, any claim for breach of contract, unpaid wages, wrongful termination, violation of federal, state[,] or city laws forbidding discrimination, harassment, and retaliation on the basis of race, color, religion, gender, sexual orientation, age, national origin, disability, and any other protected status which may be brought under applicable federal, state[,] or local law, and disputes relating to the interpretation of this Agreement.

(Id. ). The Agreement goes on to describe the arbitration process, specifying that arbitration "shall be before a single Arbitrator ...

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Bluebook (online)
291 F. Supp. 3d 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suqin-zhu-v-hakkasan-nyc-llc-ilsd-2017.