263 F. Supp. 3d 1312
S.D. Fla.2017Background
- Plaintiff Renel Richemond worked for Uber beginning October 2014 and sued under the FLSA alleging unpaid overtime and misclassification as an independent contractor.
- Richemond accepted multiple electronic agreements on Uber’s app: a June 2014 Agreement, a November 2014 Partner Agreement, and a December 2015 Technology Services Agreement.
- Each agreement contained a written arbitration provision with an express delegation clause assigning arbitrability questions to an arbitrator, and each included a 30-day opt-out right that Richemond did not exercise.
- Agreements warned (in bold/all caps) that arbitration is an important decision and suggested consulting an attorney; acceptance required two affirmations on the mobile device.
- Uber moved to compel arbitration under the Federal Arbitration Act; Richemond argued the arbitration provisions violated the NLRA and were otherwise unenforceable.
- The district court found Richemond clearly assented, that the delegation clause was clear and unmistakable, and therefore compelled arbitration and stayed the case pending the arbitrator’s decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of arbitration agreement | Arbitration provisions violate NLRA and are unenforceable under FAA | Valid arbitration agreements exist; FAA favors enforcement | Court compelled arbitration; arbitrability delegated to arbitrator |
| Who decides arbitrability | Delegation clause invalid or inapplicable | Delegation clause clearly assigns arbitrability to arbitrator | Court found clear and unmistakable evidence of delegation; arbitrator decides arbitrability |
| Validity/unconscionability of arbitration provision under state law | Provision is procedurally/substantively unconscionable | Provision is not unconscionable; opt-out and fee terms acceptable | Court (following precedent) concluded provision not unconscionable or left challenge to arbitrator |
| NLRA preemption/class/collective waiver issue | NLRA renders class/collective waiver unenforceable because Richemond is an employee | Arbitration clause covers wage-hour and classification disputes and arbitrator must decide employment status | Court noted NLRA applies to employees, but arbitrator must decide employee vs. contractor; court stayed case pending arbitration |
Key Cases Cited
- Parnell v. CashCall, Inc., 804 F.3d 1142 (11th Cir. 2015) (FAA presumption in favor of arbitration; parties may delegate arbitrability)
- Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440 (2006) (arbitration agreements are severable; challenges to contract generally go to arbitrator)
- Rent-A-Ctr., W., Inc. v. Jackson, 561 U.S. 63 (2010) (parties may delegate threshold arbitrability questions to arbitrator; courts enforce delegation unless directly challenged)