Zagorski v. The Pennant Group Inc

CourtDistrict Court, E.D. Wisconsin
DecidedDecember 2, 2021
Docket2:21-cv-01059
StatusUnknown

This text of Zagorski v. The Pennant Group Inc (Zagorski v. The Pennant Group Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zagorski v. The Pennant Group Inc, (E.D. Wis. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

GWEN ZAGORSKI, Individually and on Behalf of All Others Similarly Situated,

Plaintiff,

v. Case No. 21-CV-1059

PENNANT GROUP, INC and BRENWOOD PARK SENIOR COMMUNITY II, LLC,

Defendants.

ORDER ON MOTION TO DISMISS OR STAY AND COMPEL ARBITRATION

Gwen Zagorski filed a class action complaint against her former employers, The Pennant Group, Inc. (incorrectly named Pennant Group, Inc.) and Brenwood Park Senior Living, Inc. d/b/a Brenwood Park Assisted Living (incorrectly named Brenwood Park Senior Community II, LLC), seeking to represent a class of defendants’ employees for alleged violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the Wisconsin Wage Payment and Collection Laws, Wis. Stat. § 103.001 et seq., Wis. Stat. § 104.01 et seq., Wis. Stat. § 109.01 et seq., Wis. Admin. Code § DWD 274.01 et seq., and Wis. Admin. Code § DWD 272.001 et seq. (“WWPCL”). (Compl., Docket # 1-1.) In response, the defendants filed a motion to dismiss or, in the alternative, to stay proceedings and compel individual arbitration under an August 3, 2015 “Mutual Agreement to Arbitrate Claims” that purports to cover claims arising under the FLSA and the WWPCL. (Docket # 4.) Zagorski opposes the motion. For the reasons explained below, the defendants’ motion to dismiss this case and compel arbitration is granted. BACKGROUND FACTS Pennant Group operates over 50 Assisted Living facilities across the United States, including a facility in Franklin, Wisconsin. (Compl. ¶¶ 8, 10.) Zagorski worked as a resident assistant at the Franklin facility from 2003 through December 2020. (Id. ¶ 18.) Zagorski was

60 years old when she began working for the defendants and has a high school education. (Declaration of Gwen Zagorski (“Zagorski Decl”) ¶ 2, Docket # 12.) In August 2015, Brenwood Park Senior Living, Inc. acquired the Franklin facility. (Declaration of Raquel Pettersen (“Pettersen Decl.”) ¶ 2, Docket # 7.) Following the acquisition, existing employees were presented with a “Mutual Agreement to Arbitrate Claims” (the “Agreement”). (Id. ¶ 3.) The defendants assert that the employees were provided an opportunity to decide whether to enter into the Agreement and were given a hardcopy of the Agreement to review and sign. (Id.) The Agreement provides as follows, in relevant part:

The below-named employer, (the “Company”) and Employee hereby agree to resolve by final and binding arbitration any and all claims or controversies for which a court or other governmental dispute resolution forum otherwise would be authorized by law to grant relief, in any way arising out of, relating to, or associated with Employee’s employment with the Company or any of its parents, affiliates, or subsidiaries, or the termination of such employment. This mutual agreement to arbitrate includes any claims that the Company may have against Employee, or that Employee may have against the Company or against any of its officers, directors, employees, agents, or parent, subsidiary, or affiliated entities. The Company and Employee agree that arbitration, as provided for in this Agreement, shall be the exclusive forum for the resolution of any covered dispute between the parties. In agreeing to arbitration, both the Company and Employee explicitly waive their respective rights to trial by jury.

The claims covered by this Agreement include, but are not limited to, claims for breach of any contract or covenant, express or implied; claims for breach of any fiduciary duty or other duty owed to Employee by Company or to Company by Employee; tort claims; claims for wages or other compensation due; claims for discrimination or harassment, including but not limited to discrimination or harassment based on race, sex, pregnancy, religion, national origin, ancestry, age, marital status, physical disability, mental disability, medical condition, or sexual orientation; and claims for violation of any federal, state or other governmental constitution, statute, ordinance or regulation (as originally enacted and as amended), including but not limited to claims under Title VII of the Civil Rights Act of 1964 (“Title VII”), the Fair Labor Standards Act (“FLSA”), the Employee Retirement Income Security Act (“ERISA”), the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Family and Medical Leave Act (“FMLA”), the Wisconsin Fair Employment Act (“WFEA”), the Wisconsin Wage Payments, Claims, and Collections Law, and the Wisconsin Statutes (collectively, “Arbitrable Disputes”).

Both the Company and Employee waive any right either may otherwise have to pursue, file, participate in, or be represented in any Arbitrable Dispute brought in any court on a class basis, or as a collection action, or as a representative action. All Arbitrable Disputes subject to this Agreement must be arbitrated as individual claims. This Agreement specifically prohibits the arbitration of any Arbitrable Dispute on a class basis, or as a collection action, or as a representative action, and the arbitrator shall have no authority or jurisdiction to enter an award or otherwise provide relief on a class, collective or representative basis.

(Id. ¶ 4, Ex. 1, Docket # 7-1.) Zagorski states that she was 72 years old in 2015 when she was allegedly presented with the Agreement. (Zagorski Decl. ¶ 2.) She avers that although she does not particularly recall signing the Agreement, she does recall signing various documents during the course of her employment, but at the time of signing the documents, she did not understand their significance nor was she given a meaningful opportunity to review them. (Id. ¶ 3.) The Agreement dated August 3, 2015, bears the signatures of Raquel Pettersen on behalf of Brenwood and Zagorski. (Pettersen Decl., Ex. 1.) On or around December 28, 2020, at the age of 77, Zagorski suffered a heart attack during one of her shifts. (Zagorski Decl. ¶ 1.) She alleges that her supervisor refused to allow her to leave work to seek immediate medical assistance, thus exacerbating the severity of her condition. (Id.) Zagorski alleges that she was unable to return to work due to the severity of the heart attack. (Id.) In May 2021, Zagorski filed suit against the defendants, alleging that throughout the course of her employment, Zagorski regularly worked through her lunch. (Compl. ¶ 19.) She

alleges that the defendants violated the FLSA and the WWPCL by automatically deducting a half-hour from each shift for a meal break, even if she did not actually take such a meal break, thus failing to compensate her for all hours worked. (Id. ¶¶ 25–32.) Zagorski further alleges the defendants violated Wis. Stat. § 103.02 by refusing to grant her permission to leave work to seek medical attention during her heart attack, thus causing her to work for a period that was dangerous to her life, health, safety, and welfare. (Id. ¶¶ 33–36.) She seeks to represent a putative class of employees with similar claims. (Id. ¶¶ 37–42.) APPLICABLE RULE The Federal Arbitration Act generally requires a court to order arbitration when it

finds: (1) a written agreement to arbitrate; (2) a dispute within the scope of the arbitration agreement; and (3) a refusal by the opposing party to proceed to arbitration. Zurich Am. Ins. Co. v.

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