TED L. KUBALA, JR. v SUPREME PROD., (5th Cir. 2016) holds arbitration clause binding in FLSA action

“Ted Kubala brought a proposed Fair Labor Standards Act (“FLSA”) collective action against his employer, Supreme Production Services, Incorporated (“Supreme”). After the action was filed but, according to Supreme, before it had learned of the suit, the company announced a new policy requiring employees to arbitrate employment disputes, including FLSA claims. The agreement indicated that an employee’s continued employment was expressly conditioned on his acceptance of the terms of the agreement; it contained a “delegation clause” that assigned to the arbitrator the power to make gateway determinations as to the arbitrability of a specific claim.

Kubala continued employment and accepted payment for his work. The district court denied Supreme’s motion to dismiss or compel arbitration. Because the arbitration agreement is binding and contains a delegation clause transferring the power to decide threshold questions of arbitrability to the arbitrator, we reverse and remand and direct the district court to enter an order compelling arbitration.”

Click below to read the entire opinion:

IN THE UNITED STATES COURT OF APPEAL FOR THE FIFTH CIRCUIT
No. 15-41507
TED L. KUBALA, JR.,
Individually and on Behalf of All Other Similarly Situated,
Plaintiff-Appellee,
versus
SUPREME PRODUCTION SERVICES, INCORPORATED,
Defendant–Appellant.

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