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In compelling arbitration of an employment discrimination claim, a federal district court in Indiana held that the Older Workers Benefit Protection Act's (OWBPA) waiver requirements do not apply to jury trial waivers in arbitration agreements.
In Linton v. KB Home Indiana, Inc., No. 1:07-cv-0048-DFH-TAB, 2007 WL 2002134 (S.D. Ind. July 5, 2007), Linton sued KB Home, her former employer, alleging violations of the Age Discrimination in Employment Act. KB Home moved to compel arbitration pursuant to an arbitration clause in the employment contract. In opposing the motion, Linton argued that her claims were not subject to arbitration because she did not knowingly and voluntarily waive her right to a judicial forum as required by the OWBPA.
The Court ruled that the OWBPA's waiver requirements do not apply to procedural rights such as jury trials. The OWBPA states: "An individual may not waive any right or claim under this chapter unless the waiver is knowing and voluntary." Some district courts have held that "any right" includes jury trials, but most courts, including all federal appellate courts, have interpreted "any right" to apply only to substantive rights and not to procedural rights such as jury trials.
Additionally, as the Court noted, the legislative history does not indicate that Congress intended the OWBPA to affect arbitration agreements. Moreover, practical considerations suggest that OWBPA requirements do not apply to arbitration agreements. If the OWBPA applied to arbitration agreements, then employees would have to wait 21 days to consider the agreement, which would make it impossible for an employee to start working immediately.
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