MEMORANDUM & OPINION
Plaintiffs commenced this wage and hour putative class and collective action against Defendants PQ New York, Inc., PQ Operations, Inc., PQ 933 Broadway, Inc., PQ Central Park, Inc., and P.Q. Licensing S.A. (collectively, “Defendants”) alleging various violations of the Fair Labor Standards Act, 29 U.S.C. § 201, et seq. (“FLSA”) and New York Labor Law, Art. 19 § 650 et seq. (“NYLL”). Before me is Defendants’ motion to compel arbitration and dismiss Plaintiffs’ class action complaint pursuant to Federal Rule of Civil Procedure 12(b)(1). (Doc. 52.) Also before me is Plaintiffs’ motion for leave to file an amended complaint pursuant to Federal Rule of Civil Procedure 15(a). (Doc. 87.) For the reasons set forth herein, I find that Plaintiffs’ claims fall within the scope of the parties’ binding arbitration agreement, and thus Defendants’motion to compel arbitration, (Doc. 52), is GRANTED. In addition, because I find that the claims asserted in Plaintiffs’ proposed amended complaint are also subject to the parties’ binding arbitration agreement, the proposed amendment is futile and thus Plaintiffs’ motion for leave to file an amend complaint, (Doc. 87), is DENIED.
I. Background
A. Plaintiffs’ FLSA and NYLL Claims
Defendants own Le Pain. Quotidien restaurants throughout the United States. (Compl. ¶¶ 1, 9.)
B. Defendants’ Relationship with TriNet
In December 2014, Defendant PQ New York, Inc. entered into a customer service
Passport is TriNet’s Human Resource Information System for payroll and benefits management. (Id. ¶3.) Defendants’ employees utilize Passport for all their human resource needs, including but not limited to, payroll processing, benefits enrollment, paid time off requests, workers’ compensation issues, and accessing copies of pay stubs and tax forms. (Id.)
In December 2014, Defendants informed their existing employees that they were entering into a co-employer relationship with TriNet. (Id. ¶ 4.) During the weeks of December 8 and 15, 2014, Defendants held information sessions for their existing employees regarding Passport. (Id.) All Defendants’ existing employees were directed to access Passport through its electronic portal and instructed to complete electronic documentation regarding the terms and conditions of their employment, payroll processing, and benefits administration. (Id.) From December 2014 until the present, Defendants’ new employees were required to attend a new employee orientation during which they were informed of the co-employer relationship between TriNet and Defendants. (Id. ¶ 5.) During a new employee orientation, new employees are directed to the Passport portal and instructed to complete necessary electronic documentation regarding the terms and conditions of their employment, payroll processing, and benefits administration. (Id.) If this electronic documentation is not completed by the new employee within three days of their date of hire their employment is terminated. (Id.)
Since Defendants and TriNet entered into their co-employer relationship, employees’ paychecks list both Le Pain Quoti-den and TriNet HR as their employer. (Id. ¶8.) Employees with questions or problems related to their payroll could contact either PQ’s Human Resources department or TriNet’s Solutions Center, and PQ and TriNet would work together to resolve any issues regarding payroll, including by TriNet making a payroll adjustment in an employee’s next paycheck or issuing a hardcopy check to an employee. (Id. ¶ 7.)
C. Terms and Conditions Agreement and Dispute Resolution Protocol
TriNet’s Passport is a password-protected on-line environment, and when every worksite employee first accesses the Passport system they must enter both a user-name and a temporary password, provided by Defendants as the worksite employer, (Belloise Decl. ¶8.)
Upon logging into the Passport portal, the user is presented with the TCA which begins with the following text: “PLEASE READ THIS TCA CAREFULLY. IT CONTAINS IMPORTANT INFORMATION REGARDING ... THE HAND-LIND OF ANY DISPUTES ARISING OUT OF YOUR RELATIONSHIP WITH TRINET OR A TRINET CUSTOMER. ...” (TCA preamble.) Section 1 of the TCA is titled “Co-Employment vs. Standard Employment” and states, in part, that:
If your relationship with TriNet is beginning because the company at which you work has become a TriNet customer, this means that your company has entered into a customer service agreement with TriNet to share certain employer responsibilities as co-employers .... This TCA addresses your relationship with TriNet and you and your worksite employer have and will continue to have additional terms and conditions of employment.
(TCA § 1.) Section 9 of the TCA sets forth TriNet’s DRP; (TCA § 9.) Section 9(a) of the TCA is titled “How The DRP Applies” and states, in part, that:
This DRP covers any dispute arising out of or relating to your employment with TriNet. The Federal Arbitration Act applies to this DRP. Aso, existing internal procedures for resolving disputes, as well as the options of mediation, will continue to apply with the goal being to resolve disputes before they are arbitrated. This DRP will survive termination of the employment relationship. With only the exceptions described below, arbitration will replace going before a government agency or a court for a judge or jury trial.
(TCA § 9(a).) Section 9(b) of the TCA is titled “Limitations On How The DRP Applies” and states, in part, that:
This DRP does not apply to claims for workers compensation, state disability insurance or unemployment insurance benefits.... Nor does this DRP apply to any disputes that are, at the time of your acknowledgement of the DRP, already the subject of an existing lawsuit or agency proceeding.
(TCA. § 9(b).) Section 9(f) of the TCA is titled “Enforcement Of The DRP” and states, in part, that “[t]his DRP is the full and complete agreement relating to arbitration as the means to resolve covered disputes between you and TriNet and between you, and your worksite employer unless the DRP is waived by your worksite employer or superseded by other terms and conditions of your employment with your worksite employer.” (TCA § 9(f).) Section 10 of the TCA is titled “Acknowl-edgement” and provides, in part, that:
By clicking below, I am acknowledging that I have read and understand the contents of this Terms and Conditions Agreement (including, but not limited to, the DRP), that . I have the responsibility to read and familiarize myself with the TriNet' Employee • Handbook and Additional Policies for my company and thatI agree to abide by the terras and conditions set forth above and the policies and procedures set forth in the Employee Handbook and Additional Policies,
(TCA § 10.)
TriNet revised the terms of the TCA and DRP in late 2015 (“Revised TCA and DRP” or individually, “Revised TCA” and “Revised DRP”). (Folsom Supp. Decl. ¶ 14.)
Section 9(a) of the Revised DRP states, in part, that:
this DRP covers any dispute arising out of or relating to your employment with TriNet and/or, if you work for one of TriNet’s customers, arising out of or relating to your employment with your company, as well as any dispute with a benefit plan, insurer,' employee, officer or director of TriNet or of a TriNet customer (all of whom, in áddition to TriNet customers, are intended to be beneficiaries of this DRP) (“covered dispute”).
(Revised TCA § 9(a).) Section 9(f) of the Revised DRP is titled “Enforcement Of The DRP” and states, in part, that “[t]his DRP is the' full and complete agreement for resolution of covered disputes between you and TriNet (and its employees, officers and- agents) and/or, if you work for one of TriNet’s customers, between you and your company (and its employees, officers and agents).” (Revised TCA § 9(f).)
Section 10 of the TCA and Revised TCA contain identical language — the “Acknowl-edgement” section — which is fixed and is at all times visible to the user in its entirety, without the need to access the scroll bar. (Folsom Decl. ¶¶ 12, 13; ; Folsom Suppl. Decl. ¶ 22, Ex. E.)
D. Plaintiffs’ Agreements to Arbitrate with Defendants
As set forth below, Plaintiffs each accepted the TCA and DRP, and all Plaintiffs except Plaintiff Kutluca accepted the Revised TCA and DRP. (Docs. 55-2, 118— 1).-
Plaintiff Kutluca was employed by Defendants as a server at the 933 Broadway restaurant from February 2015 until August 2015. (Kutluca Aff. H2.)
Plaintiff Brown was employed by Defendants as a server at the 922 Seventh Ave-, nue restaurant and as a barista at the 11th Street restaurant from August 2012 until August 2015. (Brown. Aff.-¶ 2.)
On February 11, 2016, Brown logged into the TriNet Passport portal and retrieved her W-2 form. (Id. ¶ 19.) She does not “recall any window or pop-up requiring that [she] accept the terms and conditions of [the Revised TCA and DRP].” (Id.) However, later that same day, Brown received an email from TriNet which attached the Revised TCA and DRP that she had accepted earlier that day. (See Doc. 71-4.)
Plaintiff George was employed by Defendants as a barista and server in various restaurants of Defendants from April 2012 until August 2016. (George Aff. ¶ 2.)
On December 27, 2015, George logged into the TriNet Passport portal and accepted the Revised TCA and DRP.. (Folsom Supp. Decl. ¶ 16.) Later on December 27, George received an email from TriNet which attached the Revised TCA and DRP that she had accepted earlier that day. (See Doc. 90 — 1.)
Plaintiff Martinez was employed by Defendants from September 2014 until at least January 2016. (Doc. 118-1.) Plaintiff Martinez was employed by Defendants at various restaurants of Defendants in California and New York. (Doc. 103.) On January 18, 2016, Martinez logged into the TriNet Passport portal and accepted the Revised TCA and DRP. (Folsom 2d Suppl. Decl. ¶8.)
Plaintiff Cummings was employed by Defendants as a server at various restaurants of Defendants within and outside the state of New York during certain periods of time between November 2007 and January 2017. (Cummings Aff. ¶¶ 2-7.)
II. Procedural History
Plaintiffs commenced this putative class action by filing their complaint on April 25, 2016. (Doc. 1.) In lieu of answering, on July 7, 2016, Defendants filed a pre-motion letter regarding their anticipated motion to compel arbitration and dismiss the complaint. (Doc. 35.) Plaintiffs submitted their response letter on July 15. (Doc. 42.) I held the pre-motion conference regarding Defendants’ anticipated motion on July 29, and issued an order after the conference setting the briefing schedule for Defendants’ motion. (Doc. 48.) In accordance with that briefing schedule, on August 3, Defendants filed their motion to compel arbitration and dismiss the class action complaint, (Doc. 52), memorandum of law in support of the motion, (Doc. 53), declaration of Timothy Gordon, (Doc. 54), declaration of Michael Belloise with exhibits, (Doc. 55), and a letter requesting oral argument on the motion, (Doc. 56).
On September 9, 2016, Plaintiffs filed their memorandum of law in opposition to Defendants’ motion to compel arbitration and dismiss the class action complaint, (Doc. 70), and declaration of Christopher Q. Davis with exhibits, (Doc. 71). On September 22, Defendants filed their reply memorandum of law in further support of their motion, (Doc. 76), and declarations of Grant Folsom and Karolina Bartnik with exhibits, (Docs. 77, 78).
To allow the parties an opportunity to respond, to all the arguments and evidence raised in the briefing on Defendants’ motion to compel arbitration and dismiss the class action complaint, I granted separate requests by Plaintiffs and Defendants to file a sur-reply and sur-sur-reply, respectively, (Docs. 81, 86). Accordingly, on October 10, Plaintiffs filed their sur-reply in
In the midst of the briefing on Defendants’ motion to compel arbitration and dismiss the class action complaint, on September 1, 2016, Plaintiffs submitted a pre-motion letter regarding their anticipated motion for leave to file an amended complaint. (Doc. 68.) Defendants submitted their letter 'in opposition to Defendants’ motion on September 7. (Doc. 69.) I issued a memo endorsement on September 9 which (i) granted Plaintiffs’ application to proceed with a motion- seeking leave to file an amended complaint, (ii) directed the parties to submit a letter- setting forth an agreed briefing schedule regarding that motion, and (iii) instructed the parties to “brief the motion and address the proposed amendment in light of the motion to compel arbitration.” (Doc. 72.) In accordance with the agreed upon briefing schedule, (Doc. 76), on October 14, Plaintiffs filed their motion for leave to file an amended complaint, (Doc. 87), and the memorandum of law in support of the motion, (Doc. 88). On November 10, Defendants filed their memorandum of law in opposition to the motion to amend, (Doc. 92), and request for oral argument regarding the motion, (Doc. 93). On November 18, Plaintiffs filed their reply memorandum of law in support of their motion to amend. (Doc. 94.) In accordance with my November 28 order, (Doc. 98), Defendants filed their sur-reply in further opposition to Plaintiffs’ motion for leave to file an amended complaint on December 2, (Doc. 99), and Plaintiffs filed their sur-sur-reply in support of the motion on December 9, (Doc. 100).
In February 2017, Plaintiffs filed consent forms for additional opt-in plaintiffs, and the parties requested leave to supplement their briefing with respect to the motion compel arbitration and motion for leave to amend the complaint. (See Docs; 101-110.) On March 1, 2017, I held a telephone conference to discuss how to complete briefing on the' motions. In accordance with my March 7 order, (Doc. Ill), Plaintiffs submitted their supplemental reply memorandum of law and the affidavit of Ryan Cummings on May 5, (Docs. 112, 113), and Defendants submitted their supplemental memorandum of law in support of the motion to compel arbitration, and supporting declarations on May 18, (Docs. 114-117). On May 26, the parties submitted a chart summarizing when each Plaintiff accepted the TCA and DRP and/or the Revised TCA and DRP. (Doc. 118.)
Ill, Defendants’ Motion to Compel Arbitration
Defendants move to compel arbitration of Plaintiffs’ claims pursuant to the Federal Arbitration Act, 9 U.S.C. §§ 1, et seq. (“FAA”) and also' to. dismiss Plaintiffs’ class action complaint pursuant to Federal Rule of Civil Procedure 12(b)(1).
A. Applicable Law
Section 4 of - the FAA requires courts to compel arbitration in accordance with the terms of an arbitration agreement, upon the motion of either party to the agreement, provided that there is no issue regarding its creation. AT & T Mobility LLC v. Concepcion,
The Court must evaluate a motion to compel arbitration pursuant to the FAA under a standard similar to the standard for a summary judgment motion. See Bensadoun v. Jobe-Riat,
■ “Arbitration agreements are considered contracts,” Nat’l Credit Union Admin. Bd. v. Goldman, Sachs & Co.,
“[T]he ultimate question of whether the parties agreed to arbitrate is determined by state law.” Bell v. Cendant Corp.,
B. Analysis
Based on a review of the parties’ numerous and extensive submissions, it is clear that: (1) each Plaintiff entered into at least one agreement to arbitrate, (2) the arbitration agreements are valid, and (3) Plaintiffs’ claims fall within the’ scope .of those agreements.
There is no dispute that Plaintiffs Kutluca, Brown, and George clicked “I Accept” to the terms of the TCA and DRP; likewise, there is no dispute that, all Plaintiffs except Kutluca clicked “I Accept” to the terms of the Revised TCA and DRP. (Doc. 118 — 1.) Although Plaintiffs
■ Plaintiff Kutluca states that he does not, recall signing into TriNet’s Passport portal, and thus he does not recall ■clicking “I Accept” to the -terms of the DRP, (Kutluca Aff. ¶¶ 7, 8),
Plaintiff Cummings states that he was unaware that the Revised TCA and DRP contained an agreement to arbitrate, (Cummings Aff. ¶ 17); however, a party who accepts an agreement is conclusively presumed to know its contents and assent to them, Fleming,
Plaintiff George claims that, during her shift, she was pressured and hurried by her manager to accept the TCA and DRP without being given a chance to read their terms. (George Aff. ¶¶ 5, 8.) Putting aside whether Plaintiff George knowingly accepted the TCA and DRP in December 2014, she accepted the Revised TCA and DRP in December 2015 and does not challenge the circumstances surrounding that acceptance. Similarly, putting aside Plaintiff Brown’s acceptance of the TCA and DRP in December 2014, her claims would nevertheless be subject to arbitration because she accepted the Revised TCA and DRP in February 2016 and does not challenge the circumstances surround that acceptance.
Next, I find that the agreements to arbitrate, as set forth in the DRP and Revised DRP, are valid and enforceable. Plaintiffs had adequate notice that the TCA and Revised TCA contained an arbitration provision. The DRP and Revised DRP are set forth in full in the TCA and Revised TCA, as opposed to being viewable only by clicking on a hyperlink. See Meyer v. Kalanick,
■ Finally, I determine whether Plaintiffs’ FLSA and NYLL claims fall within the scope of the DRP and Revised DRP. The terms of the Revised DRP unequivocally provide that, subject to enumerated limitations,
. Plaintiffs argue that Plaintiff Kutluca’s FLSA and NYLL claims do not fall within the scope of the DRP because the language in Section 9(a) of the original DRP does not reference the worksite employer. It states “[t]his DRP covers any dispute arising out of or relating to your employment with TriNet.” (TCA § '9(a).) However, Section 9(f) of the DRP, titled “Enforcement of the DRP,” expressly references the worksite employer as a party who is vested with the right to enforce the DRP with respect to covered disputes. (TCA § 9(f).) In addition, Section 9(f) also states that covered disputes against the worksite employer are subject to the DRP “unless the DRP is waived by [the] worksite employer.” (Id.) This clause further demonstrates that the parties intended disputes against the work-site employer to fall within the scope of the DRP. Accordingly, Plaintiff Kutluca’s FLSA and NYLL claims fall within the scope qf the DRP.
Next, Plaintiffs argue that the DRP does not apply retroactively and thus claims that arose before Plaintiffs first accepted the DRP are not subject to arbitration. This argument fails for at least two reasons. First, the weight of authority supports applying broad arbitration provisions retroactively where they do not contain temporal limitations. The .DRP and Revised DRP are undeniably broad, and “the Second Circuit has held that, in the absence of language explicitly limiting an otherwise broad arbitration agreement to post-agreement disputes, the agreement should be deemed retroactive.” Schapp v. MasTec Servs. Co., No. 6:12-CV-841 (LEK/DEP),
As set forth above, I find that (1) each Plaintiff entered into at least one agreement to arbitrate, (2) the arbitration agreements are valid, and (3) Plaintiffs’ FLSA and NYLL claims fall within the scope of those agreements. Accordingly, Defendants’ motion to compel arbitration and dismiss the class action complaint; (Doc. 62), is GRANTED.
IV. Plaintiffs’ Motion to Amend
Plaintiffs seek to amend their complaint to bifurcate Plaintiffs into subclasses based upon whether Plaintiffs’ claims arose before or after they accepted the TOA. (See Doc. 87-1 ¶¶ 67,117.)
A. Applicable Law
Under Federal Rule of Civil Procedure 15(a)(2), “[l]eave to amend is to be freely given when justice requires.” Freidus v. Barclays Bank PLC,
B. Analysis
Defendants argue that Plaintiffs’ motion for leave to amend should be denied as futile because the claims asserted in the proposed amended complaint, like the claims in the original complaint, are subject to binding arbitration agreements. (Defs.’ Mot. Am. Opp. 3.)
V. Conclusion
For the reasons set forth above, Defendants’ motion to compel arbitration, (Doc. 62), is GRANTED, and Plaintiffs’ motion for leave to file an amend complaint, (Doc. 87), is DENIED as futile. In light of the fact that no party has requested a stay pending arbitration, see Katz v. Cellco P’ship,
The Clerk’s Office is respectfully directed to terminate the open motions and close the case.
SO ORDERED.
. “Compl.'’ refers to the Class Action Complaint filed April 25, 2016. (Doc. 1.)
. "Gordon Decl." refers to the Declaration of Timothy M. Gordon submitted in support of Defendants’ motion to compel arbitration and dismiss Plaintiffs’ class action complaint. (Doc. 54.)
. "Belloise Decl." refers to the Declaration of Michael Belloise submitted in support of Defendants’ motion to compel arbitration and dismiss Plaintiffs’ class action complaint. (Doc. 55.)
. "Folsom Supp. Decl.” refers to the First Supplemental Declaration of Grant Folsom submitted in support of Defendants’ motion to compel arbitration and dismiss the class action complaint, dated October 17, 2016. (Doc. 90.)
. "Kutluca Aff.” refers to the Affidavit of Plaintiff Cuneyt Kutluca which is annexed as Exhibit 1 to the Declaration of Christopher Davis in Opposition to Defendants’ Motion to Compel Arbitration and Dismiss Plaintiffs’ Class. Action Complaint (“Davis Declaration”).. (Doc. 71 — i.) I note that the parties’ joint submission that sets forth, in chart form, each Plaintiff's respective employment dates and relevant agreement or agreements with Defendants, and indicates that Kutluca was employed by Defendants until October 7, 2015, rather than August 2015 as stated in Kutluca’s affidavit. (Doc. 118-1.)
. "Pis.’ Opp,” refers to Plaintiffs’ Memorandum of Law in Opposition to Defendants’ Motion to Compel Arbitration and Dismiss Plaintiffs’ Class Action Complaint, filed September 9, 2016. (Doc. 70.)
. "Brown Aff.” refers to the Affidavit of Plaintiff Taniqua Brown which is annexed as Exhibit 2 to the Davis Declaration. (Doc. 71-2.)
. "George Aff.” refers to the Affidavit of Plaintiff Angelica George which is annexed as Exhibit 1 to Plaintiffs’ Surreply to Defendants’ Motion to Compel Arbitration and Dismiss Plaintiffs' Class Action Complaint. (Doc. 84-1.)
.' "Folsom 2d Suppl. D.ecl.” refers to the Second Supplemental Declaration of Grant Folsom submitted in support of Defendants' motion to compel arbitration and. dismiss the class action complaint, dated May 16, 2017. (Doc. 115.)
.“Cummings Aff.” refers to the Affidavit of Plaintiff Ryan Cummings which was submitted in support of Plaintiffs’ Supplemental Reply Memorandum of Law in Opposition to Defendants’ Motion to Compel Arbitration and Dismiss Plaintiffs’ Class Action Complaint. (Doc. 113.)
. Cummings states that the orientation occurred "[i]n or around May 2016” and the documentary evidence indicates that the exact date of the employee orientation was April 21, 2016. (Folsom 2d Suppl. Deck ¶ 9, Ex. D.)
. On September 9, 2016, I granted the request of Defendant P.Q. Licensing S.A. to join the motion to compel arbitration. (Doc. 72.)
. Because (1) all or a substantial part of the alleged events or omissions giving rise to the claims occurred in New York, (2) Defendants . allegedly operate restaurants located in New York (Compl, ¶¶ 13-14), and (3) Plaintiffs were allegedly employed by Defendants in New' York, (id. ¶¶ 6-7), I will apply New York law to the question of whether the, parties entered into the TCA and DRP and/or Revised TCA and DRP and thereby assented to arbitration of any dispute relating to their employment with Defendants. See Software for Moving, Inc. v. La Rosa Del Monte Exp., Inc., No. 08 Civ. 986 (JGK),
. There is no dispute that Plaintiffs' FLSA and NYLL claims are arbitrable. See Sutherland v. Ernst & Young, LLP,
. Plaintiff Martinez has not submitted any evidence challenging his acceptance of the Revised TCA and DRP.
. Kutluca also claims'that "he did not have a ■ computer or laptop” and "[t]here were no computers or laptops available during the welcome meeting orientation ... on February 24, 2015.” (Kutluca Aff. ¶¶ 5, 6.) Kutluca appears to be suggesting that someone else accessed the Passport system. Kutluca’s claims are belied by the facts and his own admissions. A first time user of the Passport system is required to change their temporary password, generate their own unique password, enter a valid e-mail address at the. bottom of the screen, and then click on a button marked "I Accept.”' (Belloise Deck ¶ 15.) Kutluca acknowledges that TriNet sent him an email confirmation indicating that he accepted the TCA and DRP while he was in attendance at the new employee orientation on February 24, 2015. (Pis.’ Opp. 3 (citing Kutluca Aff. ¶¶ 3-7; Belloise Deck Ex. B).)
. Specifically, "covered disputes” fall within the scope of the DRP, and "covered disputes” refers to any dispute relating to the employee’s employment with TriNet or the worksite employer subject to the enumerated limitations set forth at Section 9(b) of the Revised DRP. (See Revised TCA § 9(a).)
. "Defs.’ Mot, Am. Opp." refers to Defendants’ Memorandum of Law in Opposition to Plaintiffs' Motion for Leave to File an Amended Complaint, filed November Í0, 2016. (Doc. 92.)
