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Employee Claiming Racial Discrimination can be Compelled to Arbitrate when Arbitration Agreement is Part of Employment Contract

In the case Thomas v. Hyundai of Bedford, 2020-Ohio-3030, 2020 Ohio App. LEXIS 1965, an Ohio appellate court held that where a former employee signed an arbitration agreement with his then-employer, his assertion that he could not be compelled to arbitrate his race discrimination and retaliation claims against the employer was without merit because the claims fell with the scope of the arbitration agreement.

The court also held that the employee failed to establish the procedural unconscionability of the arbitration agreement because, in an at-will employment situation, Ohio employers could condition employment on the employee’s agreement to arbitrate disputes. Because the employee’s claims were arbitrable and he failed to demonstrate the agreement was unconscionable, the trial court did not abuse its discretion by staying the proceedings pending arbitration.

In this case, the plaintiff employee signed an arbitration agreement as part of his employment contract with defendant company. When plaintiff filed suit claiming race discrimination, the employer filed a motion to stay the proceedings pending arbitration per the employment agreement. Plaintiff asserted that he could not be compelled to arbitrate his discrimination claims.

The appellate court affirmed the trial court’s decision to stay the proceedings pending arbitration.

To read this case, click here.

Authors: Matthew John Markling and the McGown & Markling Team.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing like the Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

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