MEMORANDUM OPINION AND ORDER
Before the court is a Motion to Compel Arbitration (Doc. 7) filed by Defendant
I. Statement of the Case
The following basic facts, listed in the Complaint, are uncontested by Cintas and therefore assumed to be true for the purposes of this motion. Cintas hired Ms. King on May 27, 2010, as a Management Trainee. (Doc. 1 ¶ 6). On March 2, 2011, Ms. King learned that she was pregnant and was due to give birth on Oсtober 22, 2011. (Id. ¶ 12). On or around March 7, 2011, Ms. King informed her superiors at the company of her pregnancy and the due date. (Id. ¶ 13). While Ms. King had at that point been riding with drivers and learning how to handle catalogue sales, her manager re-assigned her to sanitation duties. (Id. ¶ 14-15). Later, Ms. King submitted a doctor’s note to her superiors stating that she could not continue wоrking on sanitation duties because it involved exposure to harmful chemicals. (Id. ¶ 19). In approximately May 2011, the company placed Ms. King in an office position. (Id. ¶ 20). Around July 2011, Ms. King requested leave under the Family Medical Leave Act (“FMLA”) and a Short-Term Disability Notification Form due to her pregnancy. (Id. ¶ 22). On August 25, 2011, Cintas discharged Ms. King. (Id. ¶ 24). Ms. King later applied for several advertised positions at the company, but she was not hired. (Id. ¶ 32).
Ms. King filed a Complaint (Doc. 1) against Cintas on December 11, 2012. The Complaint alleged (1) sex/pregnancy discrimination in violation of Title VII of the Civil Rights Act of 1964, (2) illegal retaliation under Title VII, (3) illegal interference and retaliation under the FMLA; (4) and deprivation of rights under the Fair Labor Standards Act (“FLSA”). (Id. ¶ 36-59). It sought declaratory judgment, permanent injunctive relief, compensatory and punitive damages, costs, expenses, and attorneys’ fees. (Id. at 11-12).
On January 3, 2013, Cintas filed the present Motion to Compel Arbitration (Doc. 7). It pointed to Section 8 of the Employment Agreement signed by Ms. King and Cintas on May 27, 2010, which identified arbitration as the exclusive method fоr resolving disputes or differences between the parties regarding “rights or claims arising out of or in any way related to Employee’s employment with Employer.” (Doc. 7 at 4-5) (emphasis added). Ms. King filed a Response (Doc. 9) in opposition on January 17, 2013. She conceded that arbitration was the proper forum to resolve her claims of pregnancy/sex discrimination, FMLA intеrference and retaliatory discharge, and FLSA wage deprivation. (Id. at 2). However, she maintained that the arbitration provision did not cover her “post-termination” claims of retaliation under Title VII and the FMLA, which concerned Cintas’s failure to hire her for any of the positions to which she had applied. (Id.). Cintas filed a Reply (Doс. 10) on January 24, 2013. It argued that (1) the arbitration provision of the Employment Agreement covered any and all claims that arose between the parties, and (2) even if the provision applied only to claims related to Ms. King’s employment, her “post-termination” claims are sufficiently related to her previous employment to render them arbitrable. (Id. at 2-7).
II. Standard of Review
The Federal Arbitration Act, 9 U.S.C. §§ 1-307 (2006 & Supp. V 2011)
Where the parties dispute the applicability or scope of an arbitration agreement, the issue is for the district court to determine.
It is well settled in both commercial and labor cases that whether parties have agreed to submit a particular dispute to arbitration is typically an issue for judicial determination. It is similarly well settled that where the dispute at issue concеrns contract formation, the dispute is generally for courts to decide.
A court may order arbitration of a particular dispute only where the court is satisfied that the parties agreed to arbitrate that dispute. To satisfy itself that such agreement exists, the court must resolve any issue that calls into question the formation or applicаbility of the specific arbitration clause that a party seeks to have the court enforce. Where there is no provision validly committing them to an arbitrator, these issues typically concern the scope of the arbitration clause and its enforceability. In addition, these issues always include whether the clause was agreed to, and may include when that agreement was formed.
Granite Rock Co. v. Int'l Brotherhood of Teamsters, - U.S. -,
The Eleventh Circuit has recently explained the district court’s role under Granite Rock as follows:
[Under Granite Rock ] the district court must first resolve any issue that calls into question the formation or applicability of the specific arbitration clausе that a party seeks to have the court enforce. In other words, arbitration of a dispute should only be ordered where the court is satisfied that neither the formation of the parties’ arbitration agreement nor its enforceability or applicability to the dispute is in issue. Where a party contests either or both matters, the сourt must resolve the disagreement.
Solymar Inv., Ltd. v. Banco Santander S.A.,
Whether a party has agreed to arbitrate an issue is a matter of contract interpretation. Telecom Italia, SpA v. Wholesale Telecom Corp.,
In determining whether parties have agreed to arbitrate a particular dispute, courts consider: (1) whether there is a valid agreement to arbitrate, and (2) whether the dispute in question falls within the scope of that agreement. Webb v. Investacorp, Inc.,
Under Alabama law, arbitration provisions are to be treated like any other contractual provision. Service Corp. Int'l v. Fulmer,
III. Analysis
Ms. King does not dispute that the Employment Agreement (“the Agreement”) signed by her and Cintas on May 27, 2010, was a valid contract or that it affected interstate commerce. (See Doc. 9). Indeed, she admits that the Agreement forces her into arbitration to resolve her claims regarding Cintas’s conduct during her employment, including her termination from the company. (Id. at 2). She аrgues, however, that the Agreement does not apply to her retaliation claims, which relate to Cintas’s failure to re-hire her after her termination. (Id. at 2-7).
The Eleventh Circuit has recently observed that circuit courts have not provided unified authority on the scope of arbitration clauses. Hemispherx Biopharma, Inc. v. Johannesburg Consol. Inv.,
Likewise, the Eleventh Circuit has not issued controlling authority that precisely fits the details of this case. But, it has published several opinions interpreting arbitration clauses that are similar to the clause at issue, and the decisions are instructive here. Telecom Italia was a convoluted case in which a telecommunications company sued a reseller of such services for breach of a leasing contract they had formed several years beforehand.
The Eleventh Circuit affirmed the district court’s ruling. Id. at 1111. It determined that the relevant question in such cases was “whether the tort of breach in question was an immediate, foreseeable result of the performance of contractual duties.” Id. at 1116 (emphasis added). That is, the arbitrability of a dispute would be decided by whether it “occurs as a fairly direct result of the performance of contractual duties.” Id. (emphasis added). Applying this formula to the facts, the court inferred that no part of the contract between the subsidiary and the reseller was “designed to, expected to, or likely to” exert pressure on the parent company to breach its lease with the reseller. Id. Such disputes that “are not related — with at least some directness — to performance of duties specified by the contract do not count as disputes ‘аrising out of the contract.” Id. The Eleventh Circuit has since adopted this paradigm in later cases. See Hemispherx,
Both parties here identify Neely v. Bechtel Corp., No. 1:07-cv-0907-WKW [wo],
In considering Bechtel’s motion, the court distinguished Neеly’s failure-to-hire claims from his retaliation claims. Id. at *2-4. After considering the prima facie elements of each claim, it decided that the former were not subject to arbitration, while the latter were. Id. As recognized in Neely, the prima facie elements of a failure-to-hire claim are that: (1) the plaintiff is a member of a protected class, (2) she applied for and was qualified for an available position, (3) she was rejected for the position, and (4) the employer filled the position -with a person outside of her protected class. Id. at *2 (citing Walker v. Prudential Prop. & Cas. Ins. Co.,
In her Response brief, Ms. King implies that her retaliation claims against Cintas arе essentially similar to the failure-to-hire claims asserted by Neely against Bechtel. (See Doc. 9 at 4). As Cintas shows in its Reply brief, this is not accurate. (See Doc. 10 at 4-5). Ms. King is advancing strictly retaliatory failure to re-hire claims.
Ms. King’s retaliatory failure to hire claims fall squarely under the arbitration clause. That clause committed both parties to arbitration regarding “rights or claims arising out of or in any way related to Employee’s employment with Employer.” (Doc. 7 at 4-5) (emphasis added). Ms. King’s retaliatory failure to hire claims plainly “arise out of’ her past employment with Cintas, as proving a causal link between her protected conduct and the decision not to hire her necessarily “relates” that decision to the reasons she was terminated. Telecom Italia,
IV. Order
For these reasons, the Motion to Compel Arbitration is GRANTED. The parties are ORDERED to arbitrate all claims asserted in this action in accordance with the Employment Agreement formed between them on May 27, 2010. Pending arbitration, the action is STAYED.
Finally, the Clerk of Court is DIRECTED to administratively close this case.
Notes
. Several circuit courts have recognized a "retaliatory failure-to-rehire" claim. See, e.g., Calero-Cerezo v. U.S. Dep’t of Justice,
. See Fed R.Civ.P. 15(a)(1).
