Sixth Circuit Rules that Revised Arbitration Agreement did not Apply to Pending Class Action
1 min read
Apr 28, 2014
A call center employee had signed a contract with the employer to arbitrate any employment disputes, but the arbitration contract only covered individual claims and not class actions. In January 2012, he filed a class action wage and hour complaint alleging that his employer failed to pay its employees for time spent logging in and out of their phone systems each work day.
In late 2012, with the class action lawsuit still in progress, he re-applied to work in the call center. The employee was hired in January, 2013 and asked to sign a new arbitration contract which covered class actions. Based on the new arbitration contract, the employer moved to arbitrate the pending class action. The Sixth Circuit Court of Appeals found that the text of the amended contract did not apply to pending claims. In doing so, the Court examined the prospective language in the contract which included the word "arise" to describe any potential disputes. The Court also considered evidence regarding the intent of the parties, which failed to show either side intended the arbitration contract to cover existing claims.
Although, in this case, the post-suit arbitration contract was found to be unenforceable, the Court's analysis suggests that such contracts may be enforceable if drafted correctly. To avoid this issue altogether, employers should review their existing arbitration contracts to make sure they cover both individual and class claims.
Featured Insights

Event
Apr 23, 2026
Driving Ahead: Insights from Industry Leaders Auto Finance Seminar

Consumer Crossroads: Where Financial Services and Litigation Intersect
Mar 13, 2026
DOJ Settlement with Car Retailer Highlights SCRA Repossession Risks

Privacy, Cyber & AI Decoded Alert
Mar 11, 2026
Compliance Considerations for GDPR Consent in Biotech Clinical Research

Press Release
Mar 4, 2026
Marcia Mueller Named the 2026 Mentorship Award Winner by YWCA Northwestern Illinois

Press Release
Mar 3, 2026
Hinshaw Announces New Administrative Leadership Appointments

In The News
Feb 27, 2026
Hinshaw Partners Examine Implications for Nursing Homes of New Illinois Aid-in-Dying Law

In The News
Feb 24, 2026
Lucy Wang Authors Law360 “Expert Analysis” on Why Attorney Civility Means More in 2026

Press Release
Feb 13, 2026
Hinshaw Team Wins Appeal in Criminal Indictment of Waukegan City Clerk Janet Kilkelly

Press Release
Feb 10, 2026
Hinshaw Trial Team Secures $0 Defense Verdict in $15 Million Auto Accident Trial

Press Release
Feb 5, 2026
Hinshaw Legal Team Secures Directed Verdict in Florida Equine Fraud Case

Press Release
Feb 4, 2026
Hinshaw Celebrates 17 Consecutive Years of Being Named an Equality 100 Award Winner
![[Video] New Regulatory Priorities Under Mayor Mamdani’s NYC Department of Consumer and Worker Protection](/a/web/oHiTWa7kRy3Ht1brq6k4BT/bkMx39/new-york-city-skyline.jpg)
