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He’s a real Nowhere Man: Employee must arbitrate wage and hour claims

December 2024 employment law letter
Authors: 

Mark Schickman, Schickman law

Because arbitrations are creatures of contract, ordinarily a nonsignatory to an arbitration agreement cannot invoke its terms. But an exception exists when that rule proves just too unfair.

Courts can’t countenance contradictory claims

Nowhere Santa Monica and eight other Nowhere LLCs operate nine organic grocery stores and cafes known as Erewhon in the Los Angeles area. A tenth LLC, Nowhere Holdco, is their managing member. Edgar Gonzalez worked for Nowhere Santa Monica at its Erewhon market for approximately five months.

As a condition of employment, Gonzalez entered into an individual arbitration agreement with Nowhere Santa Monica that prohibited class actions and provided that any dispute “between Nowhere Santa Monica, LLC DBA Erewhon-Santa Monica” and him relating to his employment would be submitted to arbitration.

How many employers were there?

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