Harris v. Yellow Transportation Co.

Brief Fact Summary.

Plaintiff sued Defendant for race discrimination, harassment, and retaliation because Plaintiff refused to sign a dispute resolution agreement, which provided that Defendant could compel arbitration. Defendant moved to compel arbitration.

Synopsis of Rule of Law.

If an at-will employee has notice that the employer’s requirement to arbitrate is a condition of employment, the employee accepts the arbitration policy by continuing to work for the employer.

Facts.

Freeman Harris (Plaintiff) worked for Yellow Transportation Co. (Defendant). While an employee there, Plaintiff received Defendant’s policy guide, which included the terms of the company’s dispute resolution process, under which the company could compel arbitration. Those terms stated that they applied to all non-union employees, which included Plaintiff, and that acceptance of the terms was a condition of employment. Plaintiff refused to sign the dispute resolution agreement, but continued working for Defendant. Plaintiff sued Defendant, alleging race discrimination, harassment, and retaliation. Defendant moved to compel arbitration.

Issue.

Whether an at-will employee accepts an arbitration policy by continuing to work for an employer if the employee has notice that the employer’s requirement to arbitrate is a condition of employment.

Held.

Yes. Defendant’s motion is granted. If an at-will employee has notice that the employer’s requirement to arbitrate is a condition of employment, the employee accepts the arbitration policy by continuing to work for the employer.