Wright v. Macy's Retail Holding, Inc.
1:21-cv-03339
N.D. Ga.Jan 17, 2023Background
- Plaintiff (pro se) worked for Macy’s as a sales associate (hired Nov 2017, began Dec 2017) and was terminated June 30, 2020; she alleges race and age discrimination, hostile work environment, and inadequate responses to three assaults while employed.
- At hire plaintiff signed onboarding materials including the Solutions InSTORE (SIS) Program, whose final step requires binding arbitration for most employment disputes; employees had a 30‑day opt‑out right.
- Plaintiff did not opt out of the SIS arbitration provision and later sued in federal court on Aug 16, 2021.
- Macy’s moved to compel arbitration; the Magistrate Judge recommended granting that motion, denying dismissal, and staying/administratively closing the case pending arbitration.
- Plaintiff filed objections reiterating workplace complaints and arguing Macy’s breached its obligations, waived arbitration, and that the SIS Program is ineffective.
- The District Court adopted the Magistrate’s Report and Recommendation: it compelled arbitration, declined to dismiss, and stayed and administratively closed the action pending arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a valid arbitration agreement exists | Plaintiff: employer did not truly employ her (start deferred), so agreement invalid | Macy’s: plaintiff signed SIS materials, received notice, had opt‑out, and worked for the company for years | Court: Valid agreement existed; one‑month deferred start did not vitiate the employment contract |
| Whether Macy’s waived the right to arbitrate | Plaintiff: Macy’s handled assault complaints and thus waived arbitration | Macy’s: internal investigations were pre‑litigation; Macy’s promptly moved to compel arbitration in federal court | Court: No waiver—Macy’s did not act inconsistently with arbitration right nor substantially participate in litigation |
| Whether the arbitration clause is unconscionable/ineffective | Plaintiff: SIS Program is a "waste of time" based on prior experience | Macy’s: SIS contains employee‑friendly cost protections, opt‑out period, onboarding disclosure | Court: Not unconscionable—procedurally and substantively enforceable; plaintiff’s anecdote did not tie ineffectiveness to contract terms |
| Whether plaintiff’s claims fall within the arbitration scope | Plaintiff: (implicitly) some disputes should proceed in court | Macy’s: SIS covers all employment‑related disputes including termination and statutory claims | Court: Claims fall squarely within the SIS arbitration clause; arbitration compelled |
Key Cases Cited
- Marsden v. Moore, 847 F.2d 1536 (11th Cir. 1988) (objections to magistrate must specifically identify challenged findings)
- Erickson v. Pardus, 551 U.S. 89 (2007) (pro se filings are liberally construed)
- Krinsk v. SunTrust Banks, Inc., 654 F.3d 1194 (11th Cir. 2011) (two‑part waiver test for arbitration rights)
- In re Checking Account Overdraft Litig., 754 F.3d 1290 (11th Cir. 2014) (litigation conduct may waive arbitration when party substantially participates)
- Kaspers v. Comcast Corp., [citation="631 F. App'x 779"] (11th Cir. 2015) (resistance to arbitration alone does not invalidate clause; standards for unconscionability)
- Dale v. Comcast Corp., 498 F.3d 1216 (11th Cir. 2007) (factors for substantive unconscionability)
- Morewitz v. West of England Ship Owners Mut. Prot. & Indem. Ass'n, 62 F.3d 1356 (11th Cir. 1995) (waiver by substantial participation in litigation)
- Himes v. Commissioner of Social Security, [citation="585 F. App'x 758"] (11th Cir. 2014) (district court may consider pro se arguments raised first in objections)
- Fed. Nat'l Mortg. Ass'n v. Prowant, 209 F. Supp. 3d 1295 (N.D. Ga. 2016) (applies two‑part waiver test)
