459 Mass. 88 | Mass. | 2011
The plaintiff Joulé Technical Staffing, Inc. (Joulé), employed the defendant, Ranch Simmons, from 2008 to 2009.
We conclude that pursuant to G. L. c. 15IB, § 5, the MCAD may conduct its own, independent proceeding based on Simmons’s complaint. With respect to Joulé and Simmons, however,
1. Facts and procedural history.
At the time Simmons was hired and thereafter presented with the employment agreement, she was pregnant, and the baby was bom in due course. Simmons alleges that she was subjected to a hostile work environment and was denied a promotion and salary increase because of Joulé’s biases against pregnant women and against women with children. She complained about the issue to Kristin Motta Zwickau, the director of Joulé’s Boston office. On July 30, 2009, Joulé terminated Simmons’s employment. On August 25, 2009, Simmons filed a complaint with the MCAD asserting discrimination on the basis of sex and pregnancy in violation of G. L. c. 151B, §§ 4 (1) and (11A); G. L. c. 149,
2. Discussion. General Laws c. 251, § 18 (a) (1), authorizes a party to appeal directly from the denial of an application to compel arbitration. See, e.g., Warfield v. Beth Israel Deaconess Med. Ctr., Inc., 454 Mass. 390, 394 (2009) (Warfield). All parties agree, therefore, that Joulé’s interlocutory appeal from the motion judge’s order is properly before us. We review the judge’s order de novo. See Feeney v. Dell Inc., 454 Mass. 192, 199 (2009), citing Commonwealth v. Philip Morris Inc., 448 Mass. 836, 844 (2007). See also Warfield, supra at 395 (motion to
a. Effect of the employment agreement’s arbitration provision on the MCAD. We consider first the effect of the arbitration provision on the MCAD’s ability to pursue its investigation and resolution of Simmons’s MCAD complaint. “The MCAD was established to enforce the Commonwealth’s antidiscrimination laws.” Stonehill College v. Massachusetts Comm’n Against Discrimination, 441 Mass. 549, 563, cert. denied sub nom. Wilfert Bros. Realty Co. v. Massachusetts Comm’n Against Discrimination, 543 U.S. 979 (2004) (Stonehill College). The MCAD has the power to investigate claims of discrimination on its own, but also has the authority — and generally follows this course — to investigate and pursue complaints filed by individuals. See G. L. c. 151B, § 5. In the latter circumstance, although the complaint is filed by the individual, the agency proceeds in its own name. See Stonehill College, supra (in proceeding under G. L. c. 151B, § 5, “it is the MCAD, and not the complainant, that prosecutes the discrimination claim”).
We review briefly the MCAD’s procedure in investigating such complaints. See generally G. L. c. 151B, § 5. Any individual alleging discrimination in employment (or otherwise), or the Attorney General, may file a complaint with the MCAD. 804 Code Mass. Regs. § 1.10(1) (1999). The chairperson of the MCAD then designates a single commissioner to investigate the complaint promptly. 804 Code Mass. Regs. § 1.10. If the investigating commissioner finds no probable cause for crediting the allegations of the complaint, the commissioner issues a lack of probable cause finding and dismisses the complaint. 804 Code Mass. Regs. § 1.15(7)(b) (2008). If, however, the commissioner determines that probable cause does exist for crediting the allegations, he or she issues a probable cause finding. Id. At that point, the investigating commissioner endeavors to “eliminate the unlawful practice complained of through conference, conciliation and persuasion.” 804 Code Mass. Regs. § 1.18 (2005). If conciliation is unsuccessful it may be terminated, see 804 Code Mass. Regs. § 1.18(l)(d), and if the investigating commissioner determines that the public interest requires a certification of issues to public hearing, the commissioner issues a complaint in the name of the
Under both Federal and Massachusetts arbitration statutes, it is clear that parties can agree to arbitrate claims of employment discrimination. See Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 26-27 (1991); Warfield, 454 Mass, at 395-396; Rosenberg v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 170 F.3d 1, 17-21 (1st Cir. 1999). By its express terms, the arbitration provision in Simmons’s employment agreement is governed both by the Massachusetts Arbitration Act, G. L. c. 251, § 2 (MAA), and by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. (2006) (FAA). For agreements governed by the FAA, the statute’s presumption of arbitrability means that “in applying general state-law principles of contract interpretation to the interpretation of an arbitration agreement within the scope of the [FAA] . . . due regard must be given to the federal policy favoring arbitration, and ambiguities as to the scope of the arbitration clause itself resolved in favor of arbitration” (citation omitted). Volt Info. Sciences, Inc. v. Trustees of Leland Stanford Jr. Univ., 489 U.S. 468, 475-476 (1989). In Warfield, supra at 398, we acknowledged this point, but also held that, in view of the strong public policy against discrimination in employ
Even where there is a clear and unmistakable provision in an employment agreement requiring arbitration of discrimination claims, however, it would not affect the MCAD’s authority under G. L. c. 151B, § 5. “The FAA directs courts to place arbitration agreements on equal footing with other contracts, but it ‘does not require parties to arbitrate when they have not agreed to do so’. . . . ‘Arbitration under the [FAA] is a matter of consent, not coercion.’ ” EEOC v. Waffle House, Inc., 534 U.S. 279, 293, 294 (2002) (Waffle House), quoting Volt Info. Sciences, Inc. v. Trustees of Leland Stanford Jr. Univ., 489 U.S. at 478, 479. The MCAD is not a party to the employment agreement at issue here, has not agreed to arbitration of Simmons’s MCAD complaint, and cannot be bound by the agreement’s arbitration provision. “[T]he proarbitration policy goals of the FAA do not require the agency to relinquish its statutory authority if it has not agreed to do so.” Waffle House, supra at 294. Accordingly, assuming the validity of the agreement’s arbitration provision,
This conclusion is consistent with, and advances, the broad statutory responsibility and authority of the MCAD to investigate and remedy instances of discrimination in the Commonwealth. See Stonehill College, 441 Mass, at 562-563, and cases cited (“While the main object of a judicial proceeding under [G. L. c. 15IB,] § 9[,] is to recover damages for the individual victim of unlawful discrimination, . . . the primary purpose of an administrative proceeding before the MCAD is to vindicate the public’s interest in reducing discrimination in the workplace by deterring, and punishing, instances of discrimination by employers against employees” [citation omitted]). See also Cuddyer v. Stop & Shop Supermarket Co., 434 Mass. 521, 534 (2001), quoting Lynn Teachers Union, Local 1037 v. Massachusetts Comm’n Against Discrimination, 406 Mass. 515, 523 (1990) (“the MCAD ‘has been charged with the task of combating
Joulé appears to agree both that the MCAD is empowered
b. Stay of court proceedings. It is Joulé’s position that the motion judge erred in granting the stay of further proceedings in its Superior Court action because, in accordance with War-field, the terms of the arbitration provision are clear and unmistakable, and Simmons lacks any ground sufficient to revoke her agreement to arbitrate. See Warfield, 454 Mass, at 398. We agree that the stay should not have been granted, but for different reasons.
The motion judge assumed in effect that the arbitration provision was valid and, by staying Joulé’s court action until the MCAD concluded its proceeding, appears to have adopted the premise advanced by the MCAD, namely, that the agency’s proceeding takes precedence over any arbitration. However, “when parties agree to arbitrate all questions arising under a contract, state laws lodging primary jurisdiction in another forum, whether judicial or administrative, are superseded by the FAA.” Preston v. Ferrer, 552 U.S. 346, 349-350 (2008). In staying further proceedings in Joulé’s action to enforce the parties’ agreement to arbitrate, the motion judge in effect placed primary jurisdiction over Simmons’s discrimination-based claims in the MCAD. This was error. If an employer and employee enter into a valid and sufficiently clear agreement to arbitrate any and all disputes relating to discrimination, then the party seeking arbitration of such a dispute is entitled to have the agreement enforced.
In sum, Joule would appear entitled to compel arbitration of a dispute with Simmons over her claims of employment discrimination if the agreement’s arbitration provision is valid and meets the “clear and unmistakable” requirements of Warfield.
So ordered.
Joulé Technical Staffing, Inc., is a corporation organized under the laws of New Jersey. It is a subsidiary of Joulé, Inc., also a corporation organized under the laws of New Jersey. John G. Wellman is president of Joulé, Inc. Doing business as CM Access, Joulé Technical Staffing, Inc., has an office in Boston. Kristin Motta Zwickau and Kari Burke are the director and office manager, respectively, of that Boston office. The plaintiffs are referred to collectively in this opinion as Joulé. The defendant Randi Simmons worked at Joulé’s Boston office.
We acknowledge the amicus briefs filed by the Attorney General on behalf of the Commonwealth; the Massachusetts Employment Lawyers Association; the New England Legal Foundation and Associated Industries of Massachusetts; and the Massachusetts Academy of Trial Attorneys. We also acknowledge the amicus brief of the American Civil Liberties Union of Massachusetts, together with Charles Hamilton Houston Institute for Race and Justice; Fair Employment Project, Inc.; Gay and Lesbian Advocates & Defenders; Greater Boston Civil Rights Coalition; Greater Boston Legal Services Corporation (on its own behalf and on behalf of the Chelsea Collaborative, the Chinese Progressive Association, the Massachusetts Coalition for Occupational Safety and Health, and Metrowest Immigrant Worker Center); Jewish Alliance for Law and Social Action; Lawyers’ Committee for Civil Rights Under Law of the Boston Bar Association; League of United Latin American Citizens-Massachusetts; Massachusetts AFL-CIO; Massachusetts Law Reform Institute; Massachusetts Transgender Political Coalition; National Lawyers Guild, Massachusetts Chapter; and Union of Minority Neighborhoods, and joined by the Disability Law Center and the Massachusetts Chapter of the National Organization of Women.
The facts summarized here are taken from the complaint to enforce the arbitration agreement and accompanying affidavits that Joulé filed in the Superior Court, Joulé’s motion to enforce the arbitration agreement and the accompanying affidavit of Zwickau, Simmons’s opposition to Joulé’s motion to enforce the arbitration provision in Simmons’s employment agreement (agreement) and Simmons’s own accompanying affidavit, and the arbitration provision itself.
Joulé asserts that this occurred on Simmons’s first day of employment; Simmons represents that it occurred “[ujpon or shortly after” she began her employment.
The arbitration provision reads in relevant part:
“a. I hereby understand and agree that disputes between me and
“b. I understand and acknowledge that my agreement to submit all applicable disputes as described above to binding arbitration means that with respect to all such claims I am knowingly, and voluntarily waiving my right to a trial by jury and that I am doing so free of any duress or coercion. ...”
See discussion at Part 2(b), infra.
In Warfield v. Beth Israel Deaconess Med. Ctr., Inc., 454 Mass. 390 (2009) (Warfield), we wrote that “[a]n agreement to arbitrate employment discrimination claims represents a limited waiver of rights under G. L. c. 151B. An employee who agrees to arbitrate such a claim of course does not forgo the substantive rights afforded by the statute . . . but does give up the substantial right to seek administrative or judicial remedies” (emphasis added). Id. at 398 n.13. The sole issue in Warfield was whether the employee and employer had specifically agreed to arbitrate claims of discrimination within the scope of protection afforded by G. L. c. 151B when they included a general arbitration clause in their employment agreement. See id. at 395-396. We concluded that the employee there had not so agreed. Id. at 402. To the extent that the highlighted language appearing in a footnote may suggest that an employee who has agreed to arbitrate a discrimination claim is precluded from filing a complaint with the MCAD under G. L. c. 151B, § 5, it is incorrect and we do not follow it. See EEOC v. Waffle House, Inc., 534 U.S. 279, 288-289, 291 (2002) (Waffle House).
An argument has been advanced, and addressed by the parties and amici, that pursuant to G. L. c. 151B, § 5, the MCAD “adjudicates” complaints of discrimination brought by private complainants and, therefore, that the decision of the United States Supreme Court in Preston v. Ferrer, 552 U.S. 346
In its brief, Joulé requests that we vacate the Superior Court order and direct on remand that Simmons be ordered to dismiss her MCAD complaint. However, during oral argument before this court Joulé agreed that, notwithstanding the arbitration provision in the agreement, Simmons was entitled to file a complaint with the MCAD.
The judge’s order states that “[t]he Arbitration Agreement, to the extent enforceable, does not preclude Simmons from being a party to the MCAD action.”
As other courts have noted, there is an inefficiency inherent in having the same core issues be the subject of simultaneous but separate proceedings in two different forums. See, e.g., Marie v. Allied Home Mtge. Corp., 402 F.3d 1, 16 (1st Cir. 2005). Cf. Dean Witter Reynolds Inc. v. Byrd, 470 U.S. 213, 217 (1985) (“the Arbitration Act requires district courts to compel arbitration of pendent arbitrable claims when one of the parties files a motion to compel, even where the result would be the possibly inefficient maintenance of separate proceedings in different forums”). But if an employer decides to initiate arbitration while a related proceeding before the MCAD is ongoing, the decision whether to stay the arbitration proceeding pending the outcome of the MCAD case would appear to be up to the arbitrator. See Marie v. Allied Home Mtge. Corp., supra at 16 nn.11, 13.
Another question raised by such simultaneous proceedings is the impact a settlement of the arbitration or final arbitration award would have on the MCAD’s adjudication or on the type of relief the MCAD may order. See Waffle House, 534 U.S. at 297 (“It is an open question whether a settlement or arbitration judgment would affect the validity of the EEOC’s claim or the character of relief the EEOC may seek”). But, as the Supreme Court also stated, “it ‘goes without saying that the courts can and should preclude double recovery by an individual.’ ” Id., quoting General Tel. Co. of the Northwest v. EEOC, 446 U.S. 318, 333 (1980).
The record reflects that Simmons refused to pursue arbitration under the employment agreement, and she may take the position that she does not have any “disputes” with Joulé. But the arbitration provision provides that “disputes between [the employee] and Joulé” are to be resolved by arbitration; this language appears to enable Joulé itself to initiate arbitration if it considers
Simmons contended below — and argues here — that in addition to being unconscionable, the arbitration provision does not satisfy the specificity requirements of Warfield, 454 Mass, at 398, and therefore does not cover her discrimination claims in any event. The argument fails. The arbitration provision, quoted in full, see note 7, supra, provides in pertinent part that “disputes between me [Simmons] and Joulé, its employees and/or its clients relating to my employment and/or termination of my employment (which includes without limitation, claims of discrimination, harassment, hostile work environment, retaliation, or other wrongful termination claims) will be resolved by binding arbitration” (emphasis added). This language makes it “clear and unmistakable,” see War-field, supra, that the arbitration provision applies to employment discrimination claims. We do not agree with Simmons that the reference to waiver of the right to a jury trial in the second paragraph of the arbitration provision (see note 7, supra) renders ambiguous the language quoted here from the provision’s first paragraph. Finally, we understand Simmons’s complaints about the specific arbitration procedures that Joulé has prescribed and the difficulty in locating a description of them as relevant to Simmons’s claim of unconscionability, not to whether the arbitration provision meets the Warfield standard.
In challenging the arbitration provision as unconscionable, Simmons raises a host of claims. Some of these claims, such as that Simmons was forced to sign the employment agreement with the arbitration provision included after she began employment and had turned down other employment opportunities, and that the procedures governing arbitration are hidden in other documents unilaterally subject to change (see note 14, supra), do relate to the issue of unconscionability. Others, however, appear to challenge the conclusion reached by the United States Supreme Court and this court, as stated in Warfield, 454 Mass, at 399-401, that claims of employment discrimination can be subject to private arbitration. We leave for the Superior Court judge on remand the separation of these claims and their subsequent resolution.