Mutual Arbitration Agreement
Introduction
Esparza Enterprises, Inc. (“Company”) believes that most work-related concerns can be addressed with the employees’ manager or Human Resources. Thus, employees are encouraged, but not required, to speak with their manager or Human Resources to resolve any work-related problem before initiating the procedures set forth in this Mutual Dispute Resolution Agreement (“Agreement” or “Arbitration Agreement”). Where resolution cannot be achieved through the Company’s internal resources, the undersigned employee, his/her heirs, executors, administrators, successors, and assigns (“Employee”) and the Company agree to use the arbitration procedures in this Agreement instead of a trial in court before a judge or jury. Arbitration is the process by which a neutral third party makes a binding decision relating to a dispute. This Agreement is a condition of employment. If Employee accepts or continues employment with the Company, both Employee and the Company will be bound by this Agreement’s terms unless Employee timely opts out of this Agreement as provided below.
Covered Claims
Other than as provided in this Agreement, to the maximum extent permissible under federal law, Employee and the Company agree that any controversy, dispute, or claim relating to Employee’s employment or association with the Company or the Company’s clients, including your worksite employer(s), if any, that could otherwise be raised in court that the Company has against Employee or that Employee has against the Company, its current or former officers, directors, members, employees, vendors, clients, customers, worksite employers, agents, parents, subsidiaries, affiliated companies, successors, or assigns, shall be settled exclusively by binding arbitration rather than in court. This Agreement to arbitrate is intended for the benefit of and may be enforced by any of the aforementioned third-party beneficiaries. It is the parties’ intent that unless specifically excluded by the Agreement, all claims between them covered by this Agreement (“Covered Claims”) are to be resolved through binding arbitration not court, to the fullest extent permitted by federal law. However, if an arbitration award would be rendered ineffectual without provisional relief including, but not limited to, preliminary injunctions or temporary restraining orders, either party may request such relief from a court of competent jurisdiction to preserve the status quo pending arbitration.
Covered Claims include, but are not limited to, claims for wages and other compensation, breach of contract, misappropriation of trade secrets or unfair competition, violation of public policy, wrongful termination; tort claims; claims for unlawful retaliation, discrimination and/or harassment; and claims for violation of any federal, state, or other government law, statute, regulation, or ordinance, such as, for example, claims under the Age Discrimination in Employment Act, the Americans with Disabilities Act; Title VII of the Civil Rights Act of 1964; the Equal Pay Act; the Fair Credit Reporting Act; the Fair Labor Standards Act; the Family and Medical Leave Act; the Pregnancy Discrimination Act; the Rehabilitation Act; section 1981 through 1988 of Title 42 of the United States Code; and/or the Worker Adjustment and Retraining Notification Act.
Claims not covered by this Agreement are: claims for workers' compensation or unemployment benefits; violations of the National Labor Relations Act; petitions or charges that could be brought before the National Labor Relations Board; charges filed with the Equal Employment Opportunity Commission or a similar government agency; claims under employee pension, welfare benefit or stock option plans if those plans provide a dispute resolution procedure; and after application of FAA preemption principles, claims which are not subject to arbitration or pre-dispute arbitration agreements pursuant to federal law, but only to the extent federal law prohibits enforcement of the Agreement with respect to such claims. To the extent federal law prohibits enforcement of the representative action waiver (discussed in section III below) with respect to representative claims under California’s Private Attorneys General Act of 2004, California Labor Code §§ 2698, et seq. and representative claims for public injunctive relief under California Business and Professions Code § 17203, such claims also are not covered by this Agreement. This Agreement does not limit any federal, state, or local government or administrative agency’s jurisdiction and nothing herein shall be construed to constitute a waiver of Employee’s right to file a charge or complaint with any such agency, including but not limited to the National Labor Relations Board and the Equal Employment Opportunity Commission. However, unless otherwise provided by applicable law, Employee shall not be entitled to seek or receive any monetary compensation as a result of any proceeding arising from the filing of any such charge and/or participating in an investigation resulting from the filing of a charge with the EEOC and/or state or local human rights agency.
Nothing in this Agreement prevents Employee from reporting good faith allegations of unlawful employment practices to appropriate federal, state or local agencies; reporting any good faith allegation of criminal conduct to any appropriate federal, State, or local official; participating in a proceeding with any appropriate federal, State, or local government agency enforcing discrimination laws; making any truthful statements or disclosures required by law, regulation, or legal process; or requesting or receiving confidential legal advice. Nothing in this Agreement prohibits Employee from filing a complaint with the California Division of Labor Standards Enforcement (“DLSE”) seeking a non-binding administrative hearing before the DLSE pursuant to Labor Code section 98 et seq. (known as a “Berman” hearing). However, any de novo appeal by Employee or the Company after a Berman hearing from a decision by the DLSE will be subject to this Agreement.
Waiver of Multi-Plaintiff, Class, Collective and Representative Actions (“Waiver”)
Covered Claims must be brought on an individual basis only, and arbitration on an individual basis is the exclusive remedy. No arbitrator has authority to consolidate claims or proceed with arbitration on multi-plaintiff, class, collective, or representative basis. Should such a claim be initiated in arbitration, the arbitrator shall summarily reject it as beyond the scope of this Agreement. Any disputes concerning the applicability or validity of this Waiver shall be decided by a court of competent jurisdiction, not by the arbitrator. In the event a court determines that this Waiver is unenforceable with respect to any claim, this Waiver shall not apply to that claim, and that claim may only be initiated in court (subject to applicable claims and defenses) as the exclusive forum.
Authority to Determine Arbitrability
Except as provided in Section III, and except if a party requests provisional relief from a court of competent jurisdiction to preserve the status quo pending arbitration, the arbitrator shall have the exclusive authority to resolve any dispute relating to the arbitrability of any individual claim or the enforceability or formation of this Agreement (including all defenses to contract enforcement such as, for example, waiver of the right to compel arbitration). Enforcement of this Agreement may not be precluded or delayed on the grounds that (1) a party to this Agreement also is a party to a pending court action or special proceeding with a third party arising out of the same transaction or series of related transactions, or (2) a party to this Agreement asserts arbitrable and non-arbitrable claims.
Procedures
The demand for arbitration must be in writing, personally signed by the person initiating the claim, and made within the time period required under the applicable statute of limitations. To initiate arbitration, Employee must deliver the written and personally-signed demand to the Company at 3851 Fruitvale Ave., Bakersfield, CA 93308, Attn: Legal Department. For the Company to initiate arbitration, it must deliver the written demand, signed by the Company, for arbitration to Employee at the last known address recorded in Employee’s personnel records. The party initiating arbitration also must, within the time period required under the applicable statute of limitations, submit the personally-signed and written demand to the arbitration service that will administer the claim (as explained below). The Company shall pay all arbitration fees and costs that would not be incurred in a court proceeding.
The arbitration shall be before a single neutral arbitrator. Unless the parties otherwise agree, the American Arbitration Association (“AAA”) shall administer the arbitration and the hearing shall take place in the county in which the dispute arose. The Employment Arbitration Rules and Mediation Procedures (“AAA rules”), or the employment rules of the arbitration service used, shall govern the arbitration proceedings, but to the extent the rules conflict with this Agreement, the provisions of this Agreement shall apply. Employee may obtain a copy of the AAA rules before signing this Agreement at www.adr.org, by contacting the AAA directly (toll-free 800-778-7879), or by contacting the Company’s Human Resources department at 661-631-0347. Each party shall have the right to conduct discovery adequate to fully and fairly present the claims and defenses consistent with the streamlined nature of arbitration. Each party shall have the right to file dispositive motions pursuant to the Federal Rule of Civil Procedures in the jurisdiction in which the arbitration is conducted (including without limitation motions to dismiss or for summary judgment).
The arbitrator shall apply the substantive law relating to all claims and defenses to be arbitrated the same as if the matter had been heard in court, including with respect to the award of any remedy or relief on an individual basis and any award of costs and attorneys’ fees to the prevailing party. Otherwise, the parties shall each bear their own costs and attorneys’ fees. The arbitrator also may award monetary and non-monetary sanctions or other relief against a party or a party’s attorney(s) for violation of this Agreement, the AAA Employment Rules, an Arbitrator’s Order, the filing of frivolous claims, and/or violation of Federal Rule of Civil Procedure 11. The arbitrator’s award shall be in writing, with factual findings, reasons given, and evidence cited to support the award. The Parties agree that any arbitration award shall have no preclusive effect as to issues or claims in any other dispute or arbitration proceeding and that arbitrators are barred from giving prior arbitration awards precedential effect. Any authorized decision or award of the arbitrator shall be final and binding on the parties. Any court of competent jurisdiction may enter judgment upon the award, either by (i) confirming the award or (ii) vacating, modifying, or correcting the award on any ground permitted by applicable law.
Governing Law, Consideration, Severability, Final Agreement
The Federal Arbitration Act (9 U.S.C. Sections 1, et seq.) shall govern this Agreement. State arbitration statutes shall apply only to the extent they are not preempted by the FAA.
The Parties agree that the mutual promises to arbitrate claims covered by the Agreement serve as adequate consideration. To the extent permitted by applicable federal law, new or continued employment, and the Company’s agreement to pay all fees and costs unique to arbitration serve as additional consideration.
If any part of this Agreement is held to be invalid, void, or unenforceable, it shall be interpreted in a manner or modified to make it enforceable. If that is not possible, it shall be severed and the remaining provisions of this Agreement shall remain in full force and effect.
This Agreement sets forth the final agreement of the parties and supersedes all prior negotiations, representations or agreements, whether written or oral, pertaining to arbitration of claims covered by the Agreement. By issuance of this Agreement, the Company agrees to be bound without signing it.
Nothing in this Agreement constitutes an express or implied contract of employment for any defined period of time. Nor does it alter any applicable employment at will relationship between Employee and the Company.
Opt Out
Arbitration is not a mandatory condition of employment. Employee may opt out by mailing via U.S. Mail, Return Receipt Requested, written notice of the intent to opt out within 30 calendar days of signing this Agreement to: 3851 Fruitvale Ave., Bakersfield, CA 93308, Attn: Legal Department. If the Company does not receive the written notice of the intent to opt out within the 30 calendar-day period, the Parties shall be bound by this Agreement. Employee will not be subject to retaliation for exercising the right to assert claims or opt out of this Agreement. By signing below, Employee acknowledges that Employee understand the option to opt out of the Agreement pursuant to this paragraph and that a failure to timely submit the opt out notice and remaining in the employment of the Company after that date will be deemed an acceptance of the Agreement.
THIS CONTRACT IS A BINDING ARBITRATION AGREEMENT WHICH MAY BE ENFORCED BY THE PARTIES.
BY SIGNING BELOW, I ACKNOWLEDGE THAT I HAVE RECEIVED AND READ, OR HAVE HAD THE OPPORTUNITY TO READ, THIS ARBITRATION AGREEMENT. I AGREE TO THIS ARBITRATION AGREEMENT AND I UNDERSTAND THAT THIS ARBITRATION AGREEMENT REQUIRES THAT DISPUTES THAT INVOLVE THE MATTERS SUBJECT TO THE AGREEMENT BE SUBMITTED TO ARBITRATION PURSUANT TO THIS ARBITRATION AGREEMENT RATHER THAN TO A JUDGE AND JURY IN COURT.