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Castellanos v. Raymours Furniture Company Inc.

180-Day Statute of Limitations Provision Is Unenforceable Against FLSA Claims

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Memorandum and Order

*1  Plaintiffs Eric Castellanos, Luis Rios, Allen Stetler, Jean Pierre Luis, and Jose Portillo (collectively, “plaintiffs”) bring this putative class action on behalf of themselves and similarly situated individuals against Raymours Furniture Company, Inc. (“Raymours” or “defendant”) for violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §201 et. seq. and related New York state wage and labor laws. Raymours now moves to compel arbitration on an individual basis, strike plaintiffs’ class allegations, and dismiss the complaint. In response, plaintiffs concede that they entered into a binding agreement to arbitrate the instant claims with Raymours. Plaintiffs argue only that the arbitration agreement’s statute of limitations is unenforceable against their FLSA claims and must be severed. Raymours argues that the arbitrator should decide whether the arbitration agreement’s statute of limitations is enforceable, and that, in any event, the provision is enforceable. For the reasons that follow, the Court concludes that the arbitration agreement’s statute of limitations provision is unenforceable, and accordingly severs that provision. The Court additionally strikes the class allegations, and stays this action pending arbitration.I. BACKGROUNDA. FactsThe following facts are taken from the complaint (ECF No. 1), the Declaration of Stephen McPeak filed in support of defendant’s motion to compel arbitration (ECF No. 18), and the exhibits attached thereto.1

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