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Dispute Resolution Keyed to Stone, 4th Ed.
Wilks v. Pep Boys
Citation:
241 F. Supp. 2d 860 (2003)Facts
The defendant Pep Boys required employees to sign a “Mutual Agreement to Arbitrate Claims” as a condition of employment, which covered all employment-related disputes including claims for wages under the Fair Labor Standards Act. The agreement underwent several modifications over time, resulting in different versions signed by various plaintiffs. The agreement required arbitration through either the American Arbitration Association or JAMS/Endispute and contained provisions limiting discovery to one deposition per side, requiring employees to pay filing fees and half of arbitration costs, waiving equitable tolling of statutes of limitations, and giving arbitrators discretion regarding attorney’s fees. Plaintiffs filed a collective action under the FLSA seeking unpaid wages and challenged the arbitration agreement as unconscionable, lacking consideration, constituting an illusory promise, and preventing them from effectively vindicating their statutory rights.
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