Summary
The United States District Court for the Northern District of California grants USA Debusk LLC's motion to compel arbitration in Gary Alan Kittrell's employment-related wage and hour action. The court finds that Kittrell's truck-driving work places him within the Federal Arbitration Act's transportation-worker exemption, but concludes that the arbitration agreement is enforceable under the California Arbitration Act. The court rejects challenges based on California Labor Code sections 432.6 and 229 and on alleged unconscionability.
Topics
Practice areas
Questions Presented
- Whether Kittrell's employment agreement was exempt from coverage under the Federal Arbitration Act because he was a transportation worker engaged in interstate or foreign commerce.
- Whether the arbitration agreement was enforceable under the California Arbitration Act despite California Labor Code section 432.6, section 229, alleged unconscionability, and provisions concerning attorney fees, public injunctive relief, and PAGA claims.
- Whether the arbitration agreement's class-action waiver was enforceable under California law.
- Whether the action should be stayed pending individual arbitration.
Holdings
- Kittrell is a transportation worker engaged in foreign or interstate commerce and is therefore exempt from coverage under the FAA.
- A valid arbitration agreement exists and encompasses Kittrell's employment-related claims.
- Section 432.6 does not make the arbitration agreement unenforceable.
- Section 229 does not exempt any of Kittrell's claims from arbitration because none seeks collection of due and unpaid wages within the meaning of that statute.
- The arbitration agreement is not unenforceable on unconscionability grounds because its substantively unconscionable prohibition on representative PAGA claims is severable.
- Kittrell failed to make the factual showing required to invalidate the arbitration agreement's class-action waiver.
Key quotations
“Accordingly, the Court finds Kittrell has made a sufficient showing that he is a transportation worker and, consequently, is exempt.” (at 8)
“Accordingly, two factors weighing against invalidation, one factor weighing in favor of invalidation, and one factor weighing only slightly, if at all, in favor of invalidation, the Court finds Kittrell has failed to show the class action waiver should be invalidated.” (at 20)
“For the reasons stated above, USA Debusk's motion to compel arbitration is hereby GRANTED, and the above-titled action is hereby STAYED pending resolution of Kittrell's individual arbitration claims.” (at 20)
Factual background
Kittrell worked for USA Debusk as a pneumatic vacuum truck operator, performing work at California oil refineries. His duties included unloading catalyst arriving from outside California, transporting it to refineries, loading it into refinery silos, and transporting spent catalyst to destinations including Nevada and Texas. He signed an arbitration agreement in June 2020 that covered employment-related claims and contained individual-arbitration, class-action, and representative-action provisions.
Procedural history
Kittrell filed a putative class action asserting seven California employment-law causes of action concerning minimum wages, overtime, meal and rest periods, sick pay, and wage statements. USA Debusk moved to compel arbitration based on an arbitration agreement signed by Kittrell. After considering the parties' submissions, the court granted the motion to compel arbitration and stayed the case.