1st Circuit follows Supreme Court precedent, upholds arbitration clause

Arbitration clauses in employment agreements or other arrangements provide various benefits to employers. They often require employees to file any employment-related claims before an arbitrator rather than litigate them in court, which can be more time-consuming and less cost-effective. But, the arbitration clauses themselves are often subject to litigation. The U.S. 1st Circuit Court of Appeals (which covers Massachusetts employers) recently found an arbitration clause was enforceable against the individual who signed it even though the employment agreement itself had expired. The appellate court was following the U.S. Supreme Court’s lead in issuing the proemployer ruling.

Facts

Ketler Bosse had a continuous, 15-year business relationship with New York Life in New Hampshire. During the stint, he worked as both an independent contractor and, from 2004 to 2005, an employee. In 2016, the company terminated its business ties with him. He subsequently filed suit in federal court alleging race discrimination and other state law claims.

In response, New York Life invoked the arbitration clauses included in an employment agreement Bosse signed when he became an employee in 2004. The clauses required any dispute, claim, or controversy arising between the two parties, including race discrimination as well as disputes over whether any such claim is arbitrable, to be resolved by arbitration.