Suqin Zhu v. Hakkasan NYC LLC
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.
Opinion
KATHERINE POLK FAILLA, United States District Judge
Defendants move, pursuant to the Federal Arbitration Act,
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 ...
Free access — add to your briefcase to read the full text and ask questions with AI
KATHERINE POLK FAILLA, United States District Judge
Defendants move, pursuant to the Federal Arbitration Act,
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 ... and conducted in accordance with the Employment Arbitration Rules of the American Arbitration Association to the extent consistent with applicable law, including the Federal Arbitration Act, the Federal Rules of Civil Procedure (relating to filing deadlines, discovery processes, and dispositive motions), and the Federal Rules of Evidence (relating to the presentation of evidence)." (Id. ).
4. Plaintiffs' Linguistic Backgrounds
Plaintiff Zhu's native language is Mandarin Chinese. (Zhu Decl. ¶ 4). Leung's and Moy's native language is Cantonese Chinese, and both are fluent in Mandarin Chinese. (Leung Decl. ¶ 4, Moy Decl. ¶ 4). According to their declarations, Zhu, Leung, and Moy are unable to read or understand English. (Zhu Decl. ¶ 4, Leung Decl. ¶ 4, Moy Decl. ¶ 4).
B. Procedural Background
Plaintiff Zhu commenced this putative collective action by filing the Complaint on July 13, 2016, on behalf of all persons employed by Defendants as sous chefs and other similarly situated employees holding comparable positions after July 30, 2012. (Compl. ¶ 46). In lieu of answering the Complaint, Defendants filed a pre-motion letter on October 18, 2016, requesting leave to move to compel arbitration and dismiss the case pursuant to Federal Rule of Civil Procedure 12(b) or stay the action *385pursuant to the FAA, and for costs and fees associated with the pre-motion letter. (Dkt. # 14). The bases for the anticipated motion, which was directed specifically to Plaintiff Zhu, were that: "[i] Plaintiff signed a valid and enforceable arbitration agreement in consideration for her employment; [ii] Plaintiff's claims fall within the scope of the arbitration provision; and [iii] Plaintiff has withheld her consent to withdraw this lawsuit and proceed to arbitration." (Id. at 1).
On October 20, 2016, Plaintiff Zhu filed a letter motion requesting leave to file a motion to certify a collective action. (Dkt. # 16). On October 21, 2016, Plaintiff Zhu filed a subsequent letter opposing Defendants' pre-motion letter to compel arbitration in which Zhu argued that she "was fraudulently induced into signing the agreement." (Dkt. # 18). Zhu asserted that "a binding agreement was never created since it was never fully executed" and that "arbitration agreements, such as the one at issue here are incompatible with recent Second Circuit case law, namely Cheeks v. Freeport Pancake House Inc. ,
At a pre-motion conference on October 27, 2016, the Court considered Plaintiff Zhu's request for leave to file a certification motion and Defendants' request for leave to file a motion to compel arbitration. At that conference, the parties indicated that they wished to engage in settlement discussions before engaging in motion practice. For that reason, the Court did not rule on the parties' letter motions. (Dkt. # 20).
On November 8, 2016, Leung and Moy filed consent forms. (Dkt. # 21, 22). The Court notes that it had not certified a collective action in this case and that, to this day, Plaintiffs have filed neither a conditional certification motion nor an amended complaint adding Leung and Moy as plaintiffs. However, the parties' submissions refer to Leung and Moy as individual plaintiffs and state that Leung and Moy joined the case when they filed consents to sue. (See Def. Br.; Pl. Opp.; Def. Reply). The Court adopts the parties' framework and, following the parties' lead, refers to Leung and Moy as Plaintiffs in this action.
On March 31, 2017, after the parties tried unsuccessfully to settle the case, the Court ordered Defendants to file their motion to compel arbitration on or before April 20, 2017; Plaintiffs to file their opposition on or before May 11, 2017; and Defendants to file their reply, if any, on or before May 25, 2017. (Dkt. # 32). The parties filed their papers accordingly. (See Dkt. # 33-38).
DISCUSSION
A. Applicable Law
1. Federal Policy Favoring Arbitration Agreements
A court's decision to compel arbitration, or not, is governed by the FAA. Section 2 of the FAA provides that "[a] written provision in ... a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract ... shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."
The FAA applies with equal force in the employment context, and courts have consistently upheld arbitration agreements-like the one here-between employers and employees. See, e.g. , Circuit City Stores, Inc. v. Adams ,
Whether a valid arbitration agreement exists "is a matter of contract." AT&T Mobility LLC v. Concepcion ,
There are four factors that courts must consider in determining whether to send an action to arbitration:
[F]irst, it must determine whether the parties agreed to arbitrate; second, it must determine the scope of the agreement; third, if federal statutory claims are asserted, it must consider whether Congress intended those claims to be nonarbitrable; and, fourth, if the court concludes that some, but not all, of the claims in the case are arbitrable, it must then decide whether to stay the balance of the proceedings pending arbitration.
Oldroyd v. Elmira Sav. Bank, FSB ,
In deciding a motion to compel arbitration under the FAA, "the court applies a standard similar to that applicable for a motion for summary judgment." Bensadoun ,
2. Enforceability of Arbitration Agreements
Whether parties agreed to arbitrate is determined under state law. See Bell v. Cendant Corp. ,
By signing a written instrument, a party creates presumptive evidence of its assent to enter into a binding agreement. See, e.g. , Gold v. Deutsche Aktiengesellschaft ,
A party that has signed a contract may be relieved from its attendant obligations if a court finds-as Plaintiffs argue this Court should do-that the contract is unconscionable. Under New York law, a contract is unconscionable when it is "so grossly unreasonable or unconscionable in the light of the mores and business practices of the time and place as to be unenforceable according to its literal terms." Gillman ,
Without more, an inability to speak English or to understand the terms of a contract is an insufficient cause for unconscionability. See, e.g. , Victorio ,
3. Collective Arbitration and "Questions of Arbitrability"
Defendants seek to compel arbitration on an individual basis only. Plaintiffs, for their part, ask the Court to order arbitration on a collective basis, if at all. Who decides if collective arbitration is permissible-whether the arbitrator or the court-turns on whether the question can meaningfully be described as a "question of arbitrability." Howsam v. Dean Witter Reynolds, Inc. ,
The phrase "question of arbitrability" is "applicable in the kind of narrow circumstance where contracting parties would likely have expected a court to have decided the gateway matter[.]" Howsam ,
The phrase "question of arbitrability" does not apply to "other kinds of general circumstance where parties would *389likely expect that an arbitrator would decide the gateway matter," including "procedural questions which grow out of the dispute and bear on its final disposition." Howsam ,
The Supreme Court and the Second Circuit have not definitively answered the particular question presented here: whether the availability of collective arbitration is a "question of arbitrability." However, two Supreme Court cases establish a framework within which lower courts may assess the question. In Green Tree Fin. Corp. v. Bazzle ,
In Stolt-Nielsen S.A. v. AnimalFeeds Int'l Corp. ,
*390Since the Supreme Court decided Stolt-Nielsen , some courts in this District have ordered arbitration on an individual basis rather than reserving the question for the arbitrators. For example, in Anwar v. Fairfield Greenwich Ltd. ,
But most courts in this Circuit that have addressed the issue have held that the availability of class or collective arbitration is for the arbitrator to decide. In In re A2P SMS Antitrust Litigation , No. 12 Civ. 2656 (AJN),
In Wells Fargo Advisors, L.L.C. v. Tucker ,
B. Analysis
1. The Parties Executed Valid, Enforceable Arbitration Agreements
Plaintiffs concede that they each signed the Arbitration Agreement as a condition of their employment and that the Agreement was supported by valid consideration. Plaintiffs contend, however, that the Agreement each of them signed is procedurally and substantively unconscionable and therefore void. Specifically, they claim that the Agreement is procedurally unconscionable because Plaintiffs do not read or understand English and were allegedly told to sign the Agreement without the opportunity first to review it in Plaintiffs' native languages. Plaintiffs further argue that the Agreement is substantively unconscionable because it contains a confidentiality clause that, in Plaintiffs' view, violates Cheeks ,
a. The Agreement Is Not Procedurally Unconscionable
Plaintiffs' procedural unconscionability claim rests on their assertions that they are "unable to read or understand any English"; were "asked by a Chinese speaking secretary at Hakkasan to sign the [Arbitration Agreement] without first having [them] translated to [us]"; and were told that "the document must be signed immediately." (Zhu Decl. ¶¶ 4, 6; Leung Decl. ¶¶ 4, 6; Moy Decl. ¶¶ 4, 6). Without more, that is insufficient to substantiate Plaintiffs' claim that the Agreement is procedurally unconscionable. Plaintiffs do not allege that they ever tried to negotiate the terms of the Agreement or that Defendants prevented them from doing so; that Plaintiffs requested and were denied a translated version of the Agreement or the opportunity to review it; or that Defendants used high-pressure or coercive tactics. Even if Defendants' secretary told Plaintiffs to sign immediately, that would not suffice to establish procedural unconscionability. See, e.g. , Victorio ,
Plaintiffs also produce no evidence that they took reasonable steps to have the Agreement translated or to obtain any explanations from the Defendants' secretary after being asked to sign the Agreement, even though that secretary spoke a Chinese dialect that each Plaintiff understood. Under New York law, it is incumbent upon parties who do not read or understand English to "make a reasonable effort to have the document explained to [them]." Kassab v. Marco Shoes Inc. ,
b. The Agreement Is Not Substantively Unconscionable
"While determinations of unconscionability are ordinarily based on [a] conclusion that both the procedural and substantive components [of unconscionability] are present, there have been exceptional cases where a provision of the contract is so outrageous as to warrant holding it unenforceable on the ground of substantive unconscionability alone." Ragone ,
To begin with, the Arbitration Agreement's confidentiality requirements apply equally to Plaintiffs and Defendants, and the terms of the Agreement are not one-sided. Courts in this District have repeatedly held that, "when both an employer and its employees are bound to an agreement to arbitrate, when the terms of the agreement are equally applicable to both parties, and when the employer bears any unreasonable cost of the arbitration, the arbitration agreement is not unreasonably favorable to the employer." See, e.g. , Isaacs ,
In addition, the Arbitration Agreement contains a severability clause and a saving clause. The former states, in relevant part, that "[t]he provisions of this Agreement are severable, and if any provision is determined to be unenforceable, then the remaining provisions shall remain in full effect." (Arb. Agmt. 2). The latter qualifies the confidentiality clause's prohibition on disclosure with the phrase, "unless otherwise required by law." (Id. ). Because the Court reserves questions of contract interpretation to the arbitrator in the first instance, it declines to analyze these clauses. It does, however, note that if the arbitrator were to decide that the confidentiality clause is unenforceable under Cheeks , that would not necessarily void the entire agreement. Plaintiffs would still have to show that the confidentiality clause is not severable or subject to the saving clause, something the Plaintiffs have not even attempted to do here. For this reason, and because the confidentiality requirements apply equally to Plaintiffs and Defendants, the Court finds that the Arbitration Agreement is not substantively unconscionable.
2. The Arbitration Agreement Encompasses Plaintiffs' Claims
Having found the Arbitration Agreement to be enforceable, the Court next considers whether it is applicable. Courts generally construe arbitration clauses broadly. See, e.g. , McMahan Sec. Co. L.P. v. Forum Capital Mkts., L.P. ,
That the Arbitration Agreement contains broad language is irrefutable. Under the Agreement, Plaintiffs must arbitrate "any and all claims [they] wish to *393assert against the Company ... whether based upon statute, regulation, contract, tort, or other common law principles[.]" (Arb. Agmt. 1 (emphasis added) ). The Agreement also includes a non-exhaustive list of claims covered by it. That list explicitly references claims for "unpaid wages [and] 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, [or] disability[.]" (Id. ).
Plaintiffs' claims fall squarely within the terms of the Agreement. All are covered by the Agreement's reference to "any and all claims [Plaintiffs] wish to assert against the Company." (Arb. Agmt. 1). And most, if not all, are captured within the Agreement's illustrative list of arbitrable claims. As but one example, the Agreement's reference to claims for "unpaid wages" (id. ), covers Plaintiffs' FLSA and NYLL claims for unpaid overtime wages and spread-of-hour premiums; and the Agreement's reference to claims for "violation of ... laws forbidding discrimination" (id. ), captures Plaintiffs' NYSHRL and NYCHRL claims. For these reasons, the Court finds that the Arbitration Agreement encompasses Plaintiffs' claims.
3. Federal Law Compels Arbitration of Plaintiffs' Claims
Contrary to Plaintiffs' arguments, federal law-specifically, the FLSA-does not operate to foreclose arbitration of any of Plaintiffs' claims. On the contrary, courts have consistently held that agreements to arbitrate claims arising from the employment context-including the claims brought here-are valid and enforceable. See, e.g. , Adams ,
4. The Availability of Collective Arbitration Is a Question for the Arbitrator to Decide in the First Instance
The remaining issues implicated by Defendants' motion concern the allocation of authority to decide arbitration-related issues between the Court and the as-yet-unassigned arbitrator. Defendants claim that "the scope of the Arbitration Agreement is a 'gateway' issue [that is] for this Court to decide." (Def. Br. 8). Most courts in this District that have addressed the issue have held to the contrary. See, e.g. , In re A2P SMS Antitrust Lit. ,
In Bazzle , the plurality held that the availability of collective arbitration "concerns neither the validity of the arbitration clause nor its applicability to the underlying dispute between the parties [and is a question of] contract interpretation and arbitration procedures."
In reserving the question for the arbitrator, this Court is guided by the Supreme Court's characterization of questions of arbitrability as "narrow" and "limited." Bazzle ,
Defendants argue that Stolt-Nielsen requires this Court to hold otherwise. (Def. Br. 8-9). They are wrong, and their reliance on Stolt-Nielsen is misplaced. To begin with, the Stolt-Nielsen parties stipulated that the arbitration agreement was silent on the availability of collective arbitration,
In addition, in Stolt-Nielsen , the parties were "sophisticated business entities" operating in an industry where "there is no tradition of class arbitration."
Finally, the Stolt-Nielsen Court never reached the "who decides" question and, for this reason, cannot control the issue. The Stolt-Nielsen Court merely held that a party "may not be compelled under the FAA to submit to class arbitration unless there is a contractual basis for concluding that the party agreed to do so."
5. Whether the Confidentiality Provision Renders the Arbitration Agreement Unenforceable Is Similarly Reserved for the Arbitrator
Plaintiffs contend that the Agreement's confidentiality provision renders the entire contract substantively unconscionable and void. They argue that the confidentiality provision violates Cheeks and seeks to "ensure that as few employees as possible br[ing] claims under the FLSA, in clear contrast to the overarching public policy motivations behind the [FLSA]." (Pl. Opp. 6).
Defendants respond by asserting that Cheeks "has no bearing on the enforceability of Plaintiffs' arbitration agreements." (Def. Reply 4). They further note that the confidentiality provision is protected by a saving clause: "the information and documents in connection with the arbitration shall be confidential 'unless required by law. ' " (Id. (citing Arb. Agmt. 2) (emphasis added) ). Though they elected not to do so, Defendants could have also argued that, because the Agreement contains a severability clause, any infirmity that might affect the confidentiality clause would not render the rest of the agreement unenforceable.
The Court declines to resolve this issue. Doing so would require the Court to engage in inquiries involving contract interpretation that are properly reserved for the arbitrator. For example, the Court would have to determine the scope of the saving clause and the severability clause in the Arbitration Agreement, as well as the interaction between those clauses and the confidentiality provision. These are precisely the sorts of inquiries that the Bazzle plurality and courts in this District have held are for the arbitrator to decide in the first instance. Nothing in the Defendants' submissions persuades this Court to hold otherwise.
CONCLUSION
Defendants' motion to compel arbitration is GRANTED, though Defendants' request that the Court order individual arbitration in this matter is DENIED. That question, like the question regarding the validity of the confidentiality clause, is to be resolved by the arbitrator in the first instance.
Pursuant to binding Second Circuit precedent, the Clerk of Court is ORDERED to stay the case pending the outcome of arbitration. See Katz v. Cellco P'ship ,
SO ORDERED.
Related
Cite This Page — Counsel Stack
291 F. Supp. 3d 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suqin-zhu-v-hakkasan-nyc-llc-ilsd-2017.