Chipotle is currently embroiled in a multi-year wage theft lawsuit. In 2014, approximately 10,000 current and former Chipotle employees filed a class action lawsuit alleging the company failed to compensate employees for work they performed “off the clock”. The employees further claim these off the clock hours are required by Chipotle to meet company-wide labor and payroll budgets. Chipotle responded that 2,814 of the workers should be dismissed from the lawsuit because their employment contracts include a waiver or their right to join class action lawsuits and an agreement to resolve all disputes via arbitration. The United States Supreme Court issued a ruling last month which lends support to…
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North Carolina Business Court Enforces Arbitration Agreement Prohibiting Discovery, Live Testimony, and a Full Hearing
In a January 2016 (unpublished) order, the North Carolina Business Court (NCBC) enforced a contract provision compelling arbitration and prohibiting any discovery prior to the arbitration.[1] In Taggart v. Physicians Pharmacy Alliance, Inc., James Taggart sold his business, Physicians Pharmacy Alliance, Inc. (“PPA”), in a stock purchase agreement. The agreement contains a provision mandating arbitration as to “any claim, controversy, or other matter in question based upon, arising out of, or otherwise in respect of this Agreement.” The agreement further specifies: “[i]t is the desire and intent of the Parties that such arbitration be held without any discovery,…