MEMORANDUM DECISION
Plaintiff Tiffany Ryan, a former Assistant Branch Manager of JPMorgan Chase Bank, N.A. (“Chase”), brings this putative collective action alleging defendants violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201-219. Specifically, plaintiff alleges defendants failed to compensate her and others similarly situated for lawful оvertime wages.
Defendants move to dismiss the action, or in the alternative stay it, and to compel arbitration of Ryan’s claim on an individual basis pursuant to the Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1-16. (Doc. #2).
For the reasons set forth below, defendants’ motion to dismiss and to compel arbitration is GRANTED.
The Court has jurisdiction under 28 U.S.C. §§ 1331 and 1337.
BACKGROUND
For the purpose of ruling on this motion, the Court considers only the evidence relevant to defendants’ motion to dismiss and to compel arbitration.
I understand my employment is subject to my and JPMorgan Chase’s agreement to submit employment-related disputes that cannot be resolved internally to binding arbitration, as set forth in the Binding Arbitration Agreement chttp:// www.jpmorganchase.com/pdfdoc/ JPMCArbAgreement>. By signing below I acknowledge and agree that I have read and understand the Binding Arbitration Agreement, have accepted its terms and understand that it is a condition of my employment with JPMorgan Chase.
The Binding Arbitration Agreement (“BAA”) to which the Affirmation refers contains the follоwing:
As a condition of and in consideration of my employment with JPMorgan Chase & Co. or any of its direct or indirect subsidiaries, I agree with JPMorgan Chase as follows:
1. SCOPE: Any and all “Covered Claims” (as defined below) between me and JPMorgan Chase ... shall be submitted to and resolved by final and binding arbitration in accordance with this Agreement.
2. COVERED CLAIMS: “Covered Claims” include all legally protected employment-related claims, ... that I have or in the future may have against JPMorgan Chase ... which arise out of or relate to my employment or separation from employment with JPMorgan Chase ... including, but not limitеd to, claims ... [under] the Fair Labor Standards Act of 1938....
4. CLASS ACTION/COLLECTIVE ACTION WAIVER: All Covered Claims under this Agreement must be submitted on an individual basis. No claims may be arbitrated on a class or collective basis. Covered Parties expressly waive any right with respect to any Covered Claims to submit, initiate, or participate in a representative capacity or as a plaintiff, claimant or member in a class action, collective action, or other representative or joint action, regardless of whether the action is filed in arbitration or in court. Furthermore, if a court orders that а class, collective, or other representative or joint action should proceed, in no event will such action proceed in the arbitration forum. Claims may not be joined or consolidated in arbitration with disputes brought by other individual(s), unless agreed to in writing by all parties.
7. ARBITRATION PROCEEDINGS: .... (a) Feеs: All ordinary and reasonable administrative expenses of the arbitration, including fees for a single arbitrator, hearing room expenses, travel expenses of the arbitrator, the AAA representatives (if applicable), and any witnesses produced at the arbitrator’s speсific request and not otherwise called by a party, will be paid completely by JPMorgan Chase----Except as otherwise provided by law, all attorney’s fees shall be paid by the party that incurs them.
DISCUSSION
I. Standard of Review
“In the context of motions to compel arbitration brought under the Federal Arbitration Aсt, the court applies a standard similar to that applicable for a motion for summary judgment.” Bensadoun v. Jobe-Riat,
A fact is material when it “might affect the outcome of the suit under the governing law.... Factual disputes that are irrelevant or unnecessary” are not material and thus cannot preclude summary judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248,
A dispute regarding a material fact is genuine if there is sufficient evidence upon which a reasonable jury could return a verdict for the nonmoving party. See id. The Court “is not to resolve disputed issues of fact but to assess whether there are any factual issues to be tried.” Wilson v. Nw. Mut. Ins. Co.,
The party opposed to arbitrating its claim “bears the burden of proving that the claims at issue are unsuitable for arbitration.” Green Tree Fin. Corp.-Ala. v. Randolph,
If the Court finds the arbitration agreement is valid, and the claim is arbitrable, the Court may dismiss the case and order the parties to arbitrate. See Cohen v. UBS Fin. Servs., Inc.,
II. Arbitrability of Plaintiff’s Claim Under the FAA
A. The FAA
“The FAA was enacted in 1925 in response to widespread judicial hostility tо arbitration agreements.” AT & T Mobility LLC v. Concepcion, - U.S. -, -,
To decide a motion to compel arbitration of a plaintiffs claim founded on
The parties agree that plaintiff signed an employment contract containing the BAA and thus agreed to arbitration; her claim is within the scope of the BAA because it arises out of her employment; and Congress intended FLSA claims to be arbitrable. Nevertheless, рlaintiff contends the BAA is unenforceable because (i) the right to collective action cannot be waived, (ii) she will be prevented from vindicating her statutory rights if she has to arbitrate individually, and (iii) the BAA is contrary to federal policy expressed in the National Labor Relations Act (“NLRA”), 29 U.S.C. §§ 151-69, and the Norris-LaGuardia Act (“NLA”), 29 U.S.C. §§ 101-15.
B. A Collective Action Waiver is Not Per Se Unenforceable
In AT & T Mobility LLC v. Concepcion, the Supreme Court struck down California’s prohibition on class waivers in consumer arbitration agreements, reasoning that “[r]equiring the availability of class-wide arbitration interferes with fundamental attributes of arbitration and thus creates a scheme inconsistent with the FAA.” AT & T Mobility LLC v. Concepcion,
Following this clear precedent, this Court concludes collective action waivers are not per se unenforceаble due to the “FAA’s ‘overarching purpose’ of ‘ensur[ing] the enforcement of arbitration agreements according to their terms so as to facilitate streamlined proceedings.’ ” LaVoice v. UBS Fin. Servs., Inc.,
Thеrefore, plaintiffs contention that her right to proceed collectively under the FLSA cannot be waived is without merit.
C. Statutory Rights Analysis
Plaintiffs second argument turns on whether the BAA is unenforceable because it precludes her from vindicating her fed
In In re Am. Express Merch. Litig. (“Amex I”),
Taking these factors into consideration, the court in Amex I found the class action waiver at issue was unenforceable because the plaintiff demonstrated arbitration would be “prohibitively expensive.” Id. at 315-16. It reasoned that plaintiffs expert, who reviewed the case to determine the “economic rationality of bringing an individual action against Amex,” found the median plaintiff had a potential recоvery of treble damages for $5,252. Id. at 316-17. Further, the expert concluded it “would not be worthwhile for an individual plaintiff ... to pursue individual arbitration or litigation where the out-of-pocket costs, just for the expert economic study and services, would be at least several hundred thousand dollars, аnd might exceed $1 million.” Id. at 317.
The Supreme Court vacated Amex I, and remanded for reconsideration in light of Stolt-Nielsen S.A. v. AnimalFeeds Int’l Corp.,
Then, after the Supreme Court’s decision in AT & T Mobility LLC v. Concepcion, the Second Circuit sua sponte reexamined its Amex II decision. Amex III,
Applying the facts of this case to the law as enunciated by the Second Circuit, and considering the FAA’s “liberal federal policy favoring arbitration,” the Court finds plaintiff has failed to satisfy her burden to show that arbitrating her claim individually precludes her from vindicating her statutory rights. Plaintiff estimates she has $9,817.50 in damages for her overtime claim, including liquidated damages, and her opposition papers note she individually “will pursue higher damages in this action.”
At bottom, the Court finds the BAA’s class action waiver is fair, permits plaintiff to vindicate her statutory rights under the FLSA, does not hinder her ability to recover attorney’s fees or costs, and comports with public poliсy favoring arbitration and honoring private contracts. Accordingly, plaintiff has failed to satisfy her burden to show that “the claims at issue are unsuitable for arbitration,” and that “arbitration would be prohibitively expensive.” Green Tree Fin. Corp.-Ala. v. Randolph,
D. Arbitrability of Plaintiff’s Claim Under Other Federal Statutes
Plaintiffs next contends the BAA is unenforсeable because it violates both the NLA and the NLRA.
These arguments are without merit. First, the NLA does not apply to
CONCLUSION
Defendants’ motion to dismiss is GRANTED, and the parties are ordered to arbitrate plaintiffs claim under the Binding Arbitration Agreement.
The Clerk is instructed to terminate the motion (Doc. # 2) and close this case.
Notes
. Defendants note the Court of Appeals for the District of Columbia Circuit recently vacated D.R. Horton because it was decided by an unconstitutionally constituted panel of the NLRB. See Noel Canning v. NLRB,
. The Supreme Court has granted certiorari to review Amex III. Am. Express Co. v. Italian Colors Rest., - U.S. -,
. Defendants estimate plaintiff’s damages claim as $42,751.80, based on plaintiff's calculations and the complaint.
. Because the Court finds the NLA and NLRA do not preclude individual arbitration, it need not reach the parties’ arguments whether the FAA, NLA, and NLRA are in conflict.
