A Massachusetts federal judge has refused to release jurisdiction over local wage claims against a Texas employer, overriding jurisdictional arguments and contractual provisions linking aspects of the employment relationship to Texas law and courts.
In Berrey v. Evolve Cellular, Inc., et al., U.S. District Judge Leo Sorokin denied Texas-based Evolve Cellular’s motion to dismiss or transfer former employee Alan Berrey’s lawsuit against them. Sorokin found the suit could proceed in Massachusetts court regardless of forum selection and choice-of-law clauses in some of Berrey’s employment agreements pointing to Texas. The judge cited the company’s Massachusetts contacts and the state’s interest in applying its wage payment protections.
In 2016, Texas-based technology company Evolve purchased Massachusetts-based Scratch Wireless. As part of the deal, Scratch co-owner Alan Berrey signed an employment contract to join Evolve as an executive vice president working remotely from his Massachusetts home office. Under the initial contract, Berrey’s annual salary would gradually increase to $180,000.
The employment contract specified Texas state law would apply and mentioned arbitration to resolve disputes. Berrey later signed additional agreements (confidentiality, non-compete) with clauses that any lawsuits must be filed in Texas applying Texas law.
In mid-2017, Evolve declined to renew Berrey’s contract and transitioned him to at-will employment. Then, in March 2020,...
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