Motion To Compel Arbitration Should Be Decided Before Conditional Certification Of An FLSA Collective Action

Case:   Reyna v. International Bank of Commerce
United States Fifth Circuit Court of Appeal
No. 16-40057 (5th Cir. Oct. 20, 2016).

Companies and other business entities often use arbitration agreements to protect themselves from class action liability. The Fifth Circuit allows employers to file Motions to Compel Arbitration as to individual plaintiffs early on in the class formation process. In Reyna v. International Bank of Commerce, the Fifth Circuit held that an employer could file a Motion to Compel Arbitration before a class is conditionally certified.

In Reyna, the plaintiff, Carlos Reyna, brought an action on his behalf and on behalf of other similarly situated individuals against his former employer, International Bank of Commerce ("IBC"), contending that his employer violated the Fair Labor Standards Act ("FLSA") by failing to pay proper overtime rates. IBC moved to compel arbitration of Reyna's claims. The district court denied the motion concluding it