Key Issue
Whether an arbitrator may certify an arbitration class binding
non-parties who signed an arbitration agreement authorizing an
arbitrator to determine whether the agreement permits class
procedures.
Background
Plaintiffs are a group of female current and former retail sales
employees of Defendant Sterling Jewelers Inc. (
"Sterling"), who allege that they were paid less than
their male counterparts on account of their gender, in violation of
Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e
et seq., and the Equal Pay Act, 29 U.S.C. §
206(d).
Each plaintiff agreed to a mandatory arbitration agreement
called the "RESOLVE Program" agreement.1 The
RESOLVE agreement provides that any claim arising under the
agreement will be arbitrated "in accordance with the National
Rules for the Resolution of Employment Disputes of the American
Arbitration Association,"2 and that
"[q]uestions of arbitrability" and other "procedural
questions" "shall be