Ninth Circuit calls out disparaging language and holiday timing in TEKsystems communications
Appeals court blocks mid-lawsuit arbitration rollout, ruling employer's misleading holiday emails to workers violated federal class action protections.
The Ninth Circuit Court of Appeals delivered a sharp message to employers on January 28, ruling that TEKsystems crossed the line when it tried to pull workers out of a class action lawsuit by rolling out mandatory arbitration agreements 22 months into active litigation. For HR directors navigating the increasingly complex terrain of employment disputes, the case sets clear boundaries on when and how companies can implement arbitration policies once employees have already sued.
Four former recruiters sued TEKsystems in January 2022, claiming the professional staffing agency had misclassified them as exempt from overtime and denied proper breaks under California law. The case moved from state to federal court and proceeded normally through discovery for more than a year. Then in December 2023, just five days after the workers finished arguing for class certification, TEKsystems rolled out a new mandatory arbitration policy. The timing would prove fatal to the company's strategy.
On December 19, TEKsystems sent two carefully crafted emails. The first went to all internal staff, describing arbitration agreements as common, efficient, and cost-effective. But it went further, calling class action lawsuits wasteful and inefficient,...
PORTLAND, Maine (WGME) -- A week after employees at the Holy Donut on Park Avenue in Portland told the company they were looking to unionize, the company now says those workers made false accusati...