958 F.3d 188
3rd Cir.2020Background
- Milton Hershey School (MHS) employed Bradley and Val Darrington as full‑time houseparents; they were members of Bakery, Confectionary, Tobacco Workers & Grain Millers Local Union 464 and thus covered by a collective bargaining agreement (CBA).
- The CBA’s grievance/arbitration clause covers “any dispute alleging discrimination” under federal or state law and the Union waived members’ rights to bring private discrimination suits in state or federal court for matters encompassed by the grievance procedure.
- The Darringtons objected to MHS’s mandatory religious programming; Bradley filed a child‑welfare report (dismissed) and filed EEOC/PHRC religious discrimination charges; MHS terminated the couple soon after the initial charge.
- After right‑to‑sue letters issued, the Darringtons sued in federal court under Title VII and the Pennsylvania Human Relations Act (PHRA); MHS moved to compel arbitration under the CBA and the District Court denied the motion.
- On appeal, the Third Circuit reviewed arbitrability de novo and evaluated whether the CBA “clearly and unmistakably” waived a judicial forum for statutory discrimination claims.
- The Third Circuit held the CBA’s language did clearly and unmistakably waive the right to litigate Title VII and PHRA claims in court, including retaliation claims, and reversed to compel arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the CBA clearly and unmistakably waives employees’ right to vindicate federal statutory discrimination claims in court | Darringtons: CBA language is too general and does not explicitly waive judicial forum for statutory claims | MHS: CBA explicitly waives private suits for “any dispute alleging discrimination” under federal or state law | Held: Waiver is clear and unmistakable; Title VII claims must be arbitrated |
| Whether state PHRA claims require a different waiver standard or are preempted by the FAA | Darringtons: Pennsylvania may apply a different or more protective standard so PHRA claims shouldn’t be waived | MHS: FAA preempts contrary state rules; PHRA claims covered if CBA meets clear‑and‑unmistakable standard | Held: FAA preempts inconsistent state obstacles; PHRA claims arbitrable under the same standard |
| Whether retaliation claims fall within the CBA’s “discrimination” arbitration language | Darringtons: CBA does not explicitly reference retaliation | MHS: Retaliation is a form of discrimination and falls within the CBA’s broad coverage | Held: Retaliation is covered as discrimination; included in the waiver |
| Whether the arbitration clause is enforceable and covers the dispute | Darringtons: (did not successfully contest enforceability) | MHS: Clause is enforceable and broadly covers disputes about discrimination | Held: Enforceability not disputed; clause covers the Darringtons’ claims |
Key Cases Cited
- Wright v. Universal Mar. Serv. Corp., 525 U.S. 70 (established the “clear and unmistakable” waiver standard for CBAs)
- 14 Penn Plaza LLC v. Pyett, 556 U.S. 247 (CBA can bar judicial suits on statutory discrimination claims if waiver is explicit)
- Jones v. Does 1–10, 857 F.3d 508 (3d Cir.) (applied waiver analysis to CBA discrimination provisions)
- AT&T Tech., Inc. v. Communications Workers of Am., 475 U.S. 643 (arbitrability is a threshold question for courts to decide)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (FAA preempts state rules that obstruct arbitration)
- Jackson v. Birmingham Bd. of Educ., 544 U.S. 167 (retaliation constitutes a form of discrimination)
