102 F.4th 769
5th Cir.2024Background
- Joseph Work sued his former employer, Intertek Resource Solutions, for unpaid overtime and other relief, seeking to proceed as a class action.
- Both Work and Intertek agreed an arbitration agreement governs their dispute, but disagreed on whether it permits class (collective) arbitration.
- The arbitration agreement stated it would be administered by JAMS under its Employment Arbitration Rules and subject to its Policy on Employment Arbitration Minimum Standards.
- Intertek moved to compel individual arbitration; Work argued that the agreement referred questions of arbitrability, including class arbitrability, to the arbitrator by incorporating the JAMS Rules.
- The district court held the JAMS Rules incorporation clearly delegated arbitrability—including class arbitration—to the arbitrator, and denied Intertek’s motion to compel individual arbitration.
- Intertek appealed the district court's decision.
Issues
| Issue | Work's Argument | Intertek's Argument | Held |
|---|---|---|---|
| Who decides class arbitrability | Agreement delegates to arbitrator via JAMS Rules | No clear delegation; should be judicially decided | Arbitrator decides under clear & unmistakable rule |
| Incorporation of JAMS Rules | Cites express contract language incorporating them | "Pursuant to" is insufficient to incorporate fully | JAMS Rules are clearly incorporated by reference |
| Ambiguity under Lamps Plus | Agreement is not ambiguous; incorporates JAMS Rules | Agreement is silent/ambiguous as to class procedure | Agreement is unambiguous; Lamps Plus inapplicable |
| Scope of delegation | Delegation includes class arbitrability specifically | Delegation (if any) shouldn't cover class arbitration | Delegation includes all arbitrability, inc. class |
Key Cases Cited
- Lamps Plus, Inc. v. Varela, 587 U.S. 176 (Supreme Court bars class arbitration without clear contractual basis)
- Stolt-Nielsen S.A. v. AnimalFeeds Int’l Corp., 559 U.S. 662 (contract silence insufficient for class arbitration)
- Cooper v. WestEnd Cap. Mgmt., L.L.C., 832 F.3d 534 (incorporating arbitration rules with delegation provision sends arbitrability to arbitrator)
- 20/20 Communications, Inc. v. Crawford, 930 F.3d 715 (arbitration agreement incorporating rules delegates arbitrability to arbitrator)