Case Three: Big Brain Solutions
Big Brain Solutions is a Colossal subsidiary in the
consulting industry, located in Silicon Valley.
Early in 2014, Liz Bennett and Ralph Nickleby each applied
to become administrative assistants at Big Brain Solutions. After successfully
completing the interview process, both were hired and asked to sign contracts
that contained the following provision: “If there is any dispute as to
employment practices or employee/employer actions, this dispute will be decided
via binding arbitration.” Both Liz and Ralph signed their contracts after
being given ample time to review them and to consult an attorney if they wished
to do so.
Several months after he was hired, Ralph became addicted to
cocaine. Around the same time, Liz became pregnant with her first child. When
Liz experienced complications during her pregnancy, Big Brain initially agreed
to grant her medical leave; but shortly thereafter, the company informed Liz
that her position had been eliminated due to a “reorganization.”
Fearing that Ralph might have trouble picking up the slack
for the recently released Liz, Big Brain asked him to take a surprise drug test.
Ralph was confused and alarmed and refused to take the test. Big Brain informed
him that he was fired because of his refusal to take the test.
Liz decided to file a lawsuit in state court under the state
and federal Family and Medical Leave Acts, which guarantee pregnant women a set
number of weeks off for pregnancy. Ralph, on the other hand, submitted his case
to an arbitrator.
Your task is to determine whether either Liz or Ralph’s
grievances could be heard by a court, and explain the reasons why or why not.
Furthermore, you must determine what the likely outcomes will be if these cases
are decided by an arbitrator. Communicate your findings to the vice president
via memo.
Research the law in California and to incorporate the law of
California into your presentations to answer the two questions (the scenario is
set in California). Note the Federal and California law may significantly
impact the forum, facts and procedures of the parties in the case.
To comprehensively deal with the assignment you will need to
research California law (California pregnancy disability leave laws, California
FMLA, and California right to privacy laws) and the legal issues surrounding
Liz’s and Ralph’s cases, reflect on how the facts and the law come together,
analyze possible arguments and determine which are most reasonable and
formulate arguments addressing all issues raised by the narrative.
Your task is to determine whether either Liz or Ralph’s
grievances could be heard by a court, and explain the reasons why or why not.
Furthermore, you must determine what the likely outcomes
will be if these cases are decided by an arbitrator.
Questions to Consider
What are general procedures or rules governing a typical
arbitration proceeding?
Can a company force an employee to use arbitration (instead
of a lawsuit) to settle an employment-related dispute because of a contract
provision? Do you the provisions of the Federal Arbitration Act impacts your
answer? Why or why not?
Under what circumstances would one prefer arbitration to
litigation? Are there any significant benefits to pursuing mediation over
litigation under California law under certain circumstances?
Do you think courts should review challenges to an
arbitration award? Are there times when an arbitration clause might be invalid
or unenforceable against an employee?
What effect do claims based on specific federal or state
laws have on arbitration provisions in employment contracts? Can the parties in
the case study pursue litigation over mediation if claims are based on specific
federal or California laws? If so, under what circumstances.
SAMPLE MEMO FORMAT
Date: Date of memo (example: January 1, 2010)
To: Person(s) to whom the memo is primarily addressed
(examples: James Brown, Director of Communications or Estates and Litigation
Department)
cc: Name of anyone else who receives a copy
From: Author of memo, usually followed by his/her
handwritten initials
Subject: or Re: Concise statement of the memo’s topic
(example: Enrollment in New Benefits Program)
Recipients of memos often read them in a hurry, so it helps
to write short sentences and paragraphs. It’s also important to clearly explain
the reason for the memo in the first paragraph. For example, if this memo
informs employees that they must enroll in a new benefits program, the first
paragraph would explain that the organization has decided to implement a new
insurance program and that all employees need to enroll within the next thirty
days.
The following paragraphs (if there are any) will include any
accompanying or supporting information. In the benefits enrollment memo model,
the second paragraph might explain the reason(s) for the change in benefits,
and inform the readers of how the changes may (or may not) affect them.
A memo’s final paragraph should clearly state the specific
action(s) that the readers need to take. This final paragraph might inform the
recipients that they may enroll in person, by mail, or online, and include
specific information about where and how to enroll (office locations,
addresses, URLs, etc.). It would also remind the readers of the deadline as
well as listing the contact information of benefits specialists, in case
employees have questions or concerns. Finally, it would emphasize the benefits
or positive outcome of the policy changes.
Attachments: If including reports, charts, or other
accompanying information, always mention this at the bottom of the page.
Write a memo for the VP. Be sure to meet the following
requirements:
Format your memo following the example above, including
APA-formatted in-text citations and an APA-formatted reference list (do not
format the body of the memo using APA style, just the reference list).
Include a specific recommendation on what action, if any,
the VP should take based on your analysis and conclusions.
Support your conclusion with references to legal principles
and laws.
The memo should be no more than 10 pages (double spaced,
12-point font; the reference list does not count towards page limit).
Title your file using this protocol:
yourlastname_Arbitration_date.
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