LOS ANGELES — C.H. Robinson Company was recently denied their request to compel arbitration in a class action overtime pay lawsuit brought by its account managers and transportation representatives. The company’s employees claim they were improperly classified as exempt from state overtime requirements. Since the employees are not required to arbitrate their dispute over unpaid overtime wages, their lawsuit will continue in federal court.
Employee Complaints
The account managers and transportation representatives filed their claim against C.H. Robinson in California district court in June 2013. They claimed the company uniformly classified certain positions as exempt without taking into consideration the actual requirements and duties of the individual and the individual’s position, which is required under both state and federal law. In this case the employees who were classified as exempt from overtime did not have the required responsibilities or authority to be exempt.
With the title of “account manager” it is possible that the company was claiming the employees met the requirements under the “executive” exemption, which applies to managerial employees who are responsible for managing a department or division, directing the work of two or more employees, and having the authority to hire, fire, or discipline other employees. However, the account managers allegedly did not have the authority or responsibilities of managing others and performed the tasks similar to that of hourly, nonexempt employees.
Argument Against Arbitration
The courts have been more willing to enforce arbitration agreements in wage and overtime cases recently. However, they do closely examine the agreements and the circumstances under which the agreements were signed. Generally, if an arbitration agreement was signed at the time of hiring or the agreement does not affect continued employment and the agreement requires both parties to arbitrate disputes or specifically states which disputes must be arbitrated, then the arbitration agreement is likely to be enforced.
In this case, the account managers were offered “Incentive Bonus Agreements” on a number of occasions. The agreements were for bonuses and advances in pay, however in order to receive the bonuses and advances the employee must sign the agreement, which included an arbitration agreement. The bonus agreement included the phrase “in consideration of continued employment.” The account managers claim the inclusion of the arbitration agreement, which would apply to all claims, is unconscionable and unenforceable. The employees claim they did not have the any meaningful choice in agreeing to the arbitration, since the bonus agreement was “in consideration of continued employment.” The court agreed and it will not be enforced.
If you are being asked to sign an arbitration agreement or you signed an arbitration agreement and now believe you have an overtime pay claim, contact our knowledgeable team of overtime pay lawyers today at (855) 754-2795 to discuss your situation. Or complete the Free Unpaid Overtime Case Review form and our legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.