Sixth Circuit workplace litigation case

The U.S. Sixth Circuit Court of Appeals has ruled that job applicants who sign waivers promising not to sue their employers over workplace disputes aren't automatically barred from filing lawsuits in the future. In a case decided last Monday, the Court said a couple did not "knowingly and intelligently" waive their right to judicial recourse because they didn't know exactly what they were signing, nor were they clear on what the alternatives to litigation would be.

"In determining whether a waiver was executed knowingly and voluntarily," the Court explained, "a court considers:'(1) plaintiff’s experience, background, and education; (2) the amount of time the plaintiff had to consider whether to sign the waiver, including whether the employee had an opportunity to consult with a lawyer; (3) the clarity of the waiver; (4) consideration for the waiver; as well as (5) the totality of the circumstances.'"Morrison v. Circuit City Stores, Inc., 317 F.3d 646, 668 (6th Cir. 2003)(quoting Adams v. Phillip Morris, Inc., 67 F.3d 580, 583 (6th Cir. 1995))….."

In this case, "the Court has found that employees did not knowingly and intelligently waive their rights to a judicial forum where they 'were hired on the spot after a brief interview, during which the hiring manager hurriedly presented them with various documents that they were instructed to sign in order to be considered for the job'; where 'managers would place an 'x' in every spot an applicant [was] required to sign, and applicants would be sold to sign every 'x' without any explanation"; and where they were not given an opportunity to revoke their waiver. Walker v. Ryan’s Family Steak Houses, Inc., 400 F.3d 370, 381-82 (6th Cir. 2005)."

Citing its decision in Seawright v. American General Finance Services in 2007, the Court summarized, "They cannot be said to have knowingly and voluntarily waived their right to a judicial forum when they were not informed of the alternative procedures until a month after they began working for HVA. Cf. Seawright, 507 F.3d at 971 (explaining extensive efforts taken by defendant employer to inform employees of new dispute resolution procedures before requiring employees to waive all rights to a judicial forum)."

Alonso v. Huron Valley Ambulance, Inc.