Abdul-Hasib v. Aerotek, Inc., 1:17-cv-01502

Plaintiffs filed a putative collective FLSA wage-and-hour suit against staffing company Aerotek; plaintiffs Abdul‑Hasib and Smith worked temporary assignments through Aerotek; McGunigal did not show an employment relationship with Aerotek and later withdrew consent to join.
Abdul‑Hasib and Smith each electronically signed a Mutual Arbitration Agreement containing (1) a broad arbitration clause covering wage claims and (2) an explicit class/collective-action waiver with a severability clause and a provision that courts (not arbitrators) decide enforceability of the waiver.
Aerotek moved to dismiss Abdul‑Hasib and Smith’s claims without prejudice so they may pursue arbitration, and to dismiss McGunigal for failure to state a claim.
Plaintiffs conceded they signed the agreements and that their claims fall within the arbitration provision but argued the class/collective-action waiver is unenforceable and urged the court to await the Supreme Court’s decision on related issues.
The court applied Fourth Circuit and FAA precedents favoring enforcement of arbitration agreements and class waivers, found the arbitration provisions valid and enforceable and the waiver severable, dismissed Abdul‑Hasib and Smith without prejudice and dismissed McGunigal for failure to state a claim.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether a valid arbitration agreement exists covering the FLSA claims	Plaintiffs conceded signing but argued the class/collective-action waiver is unenforceable, which should block dismissal	Agreement is valid, covers wage claims, and plaintiffs breached by suing in court	Court: Agreement is valid and covers the claims; compel arbitration (dismiss without prejudice)
Enforceability of class / collective-action waiver	Waiver is unenforceable; court should wait for Supreme Court resolution	Waiver is enforceable under Fourth Circuit precedent; even if invalid, arbitration clause is severable	Court: Waiver enforceable under current Fourth Circuit law; severability preserves arbitration clause
Who decides enforceability of the class-action waiver	Plaintiffs implied arbitrator should decide or court should delay	Agreement provides a court (not arbitrator) decides waiver enforceability	Court: Agreement delegates enforceability issues to the court; court adjudicated and upheld waiver
Whether McGunigal can state an FLSA claim against Aerotek	McGunigal alleged membership in suit but cannot show Aerotek employment	Aerotek: no employer‑employee relationship alleged or shown	Court: Dismissed McGunigal for failure to state a claim (no employer‑employee relationship)

Shearson/American Express Inc. v. McMahon, 482 U.S. 220 (Sup. Ct.) (FAA reflects strong federal policy favoring arbitration and courts must enforce arbitration agreements)
Murray v. United Food & Commercial Workers Int’l Union, 289 F.3d 297 (4th Cir.) (court must ensure agreement exists and dispute falls within its scope before compelling arbitration)
Mercury Construction Corp. v. Moses H. Cone Memorial Hospital, 656 F.2d 933 (4th Cir.) (party seeking arbitration must show making and breach of arbitration agreement)
Chorley Enterprises, Inc. v. Dickey’s Barbecue Restaurants, Inc., 807 F.3d 553 (4th Cir.) (compel arbitration where agreement is valid and dispute falls within scope)
Hayes v. Delbert Services Corp., 811 F.3d 666 (4th Cir.) (class action waivers permissible under Fourth Circuit precedent)
Muriithi v. Shuttle Express, Inc., 712 F.3d 173 (4th Cir.) (class action waiver not unconscionable in related context)
Adkins v. Labor Ready, Inc., 303 F.3d 496 (4th Cir.) (FLSA claims may be resolved in individual arbitration)
Kerr v. Marshall University Board of Governors, 824 F.3d 62 (4th Cir.) (FLSA liability requires employer-employee relationship)