Second Circuit Enforces Arbitration Agreement, Denies Existence of Substantive "Pattern-or-Practice" Claim

On March 21, 2013, in Parisi v. Goldman, Sachs & Co., the Second Circuit compelled arbitration of the plaintiffs' Title VII sex discrimination claims and ruled that a substantive statutory right to pursue a pattern-or-practice claim under Title VII does not exist.

On behalf of themselves and a putative class, three former female employees of Goldman Sachs alleged that the company had engaged in "a continuing pattern and practice of discrimination based on sex against female Managing Directors, Vice Presidents, and Associates with respect to compensation, business allocations, promotions, and other terms and conditions."

Upon being promoted to managing director in 2003, the lead plaintiff signed a Managing Director Agreement that contained an arbitration clause, which required that any employment-related disputes be resolved via arbitration. After the lead plaintiff was terminated, she filed suit in federal court, and Goldman Sachs moved to compel arbitration. The