Sharon Owen v. Bristol Care, Inc.
702 F.3d 1050
| 8th Cir. | 2013Background
- Bristol Care signed a Mandatory Arbitration Agreement (MAA) with Owen at hiring, covering wage and FLSA claims and providing for binding arbitration of disputes.
- The MAA includes a waiver prohibiting arbitration of claims on behalf of a class (class waiver), but allows agency complaints (EEOC, etc.).
- Owen filed a September 2011 FLSA action alleging misclassification and overtime violations on behalf of herself and others, seeking class certification.
- Bristol Care sought to stay proceedings and compel arbitration under the FAA, but the district court denied, deeming the MAA invalid due to the class waiver.
- The district court relied on D.R. Horton (NLRB) and related authority to conclude class waivers are invalid in FLSA cases.
- This court reverses, holding the MAA’s class waiver enforceable and directs the district court to compel arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are class waivers in arbitrations of FLSA claims enforceable? | Owen argues FLSA implies a right to class actions that overrides FAA. | Bristol Care argues no contrary command; FAA preempts any such override. | Class waiver enforceable; no contrary command in FLSA. |
| Is D.R. Horton controlling for enforceability of class waivers in this context? | Owen relies on D.R. Horton to invalidate the waiver. | Bristol Care contends D.R. Horton is not controlling here. | D.R. Horton is not controlling; court declines to follow it and aligns with other circuits. |
Key Cases Cited
- Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20 (1991) (arbitration enforceability in employment disputes)
- Concepcion v. AT&T Mobility LLC, 563 U.S. 333 (2011) (pro-arbitration in consumer contracts upheld)
- CompuCredit Corp. v. Greenwood, 132 S. Ct. 665 (2012) (liberal federal policy favoring arbitration agreements)
- Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294 (5th Cir. 2004) (arbitration waivers in consumer/finance contexts)
