Verellen, C.J.
¶ 1 Ronald Cox, a former Quality Food Centers Inc. (QFC) employee, filed this class action challenging QFC's policy of rounding
¶ 2 QFC appeals the trial court's denial of the motion to compel arbitration. Because the collective bargaining agreements (CBAs) governing Cox's employment do not clearly and unmistakably waive his right to a judicial forum for statutory wage claims, the arbitration provision does not encompass his claims, and the trial court did not err in denying QFC's motion to compel arbitration.
¶ 3 QFC also seeks review of the trial court's earlier determination that Cox's claims were not preempted by section 301 of the Labor Management Relations Act of 1947 (LMRA).
¶ 4 We also deny QFC's motion to take judicial notice because the documents at issue relate solely to the question of waiver of the right to arbitrate, and we need not reach waiver. We deny Cox's motion to dismiss this appeal as moot because the appeal presents debatable issues. For the same reason, we deny Cox's request for fees based on the argument that QFC's appeal is frivolous.
¶ 5 Therefore, we affirm.
¶ 6 Cox was employed by QFC between October 2011 and February 2014. He worked at the QFC in Camas, Washington, and later transferred to the Moreland QFC in Portland, Oregon.
¶ 7 QFC is a supermarket chain with locations in Washington and Oregon. Between 2000 and 2014, QFC required hourly employees to use a time card to clock in and out at the beginning and end of their shifts. QFC employed a rounding policy that provided:
¶ 8 The rounding policy is not contained in or referred to by the CBAs.
¶ 9 In July 2014, Cox and another former QFC employee, Sue Jin Yi, filed the current class action challenging QFC's rounding policy.
¶ 10 United Food and Commercial Workers Union Local 555 represents QFC employees in Washington and Oregon. Cox's employment with QFC was covered by one CBA while he worked at the QFC in Camas, Washington,
¶ 11 In May 2015, the trial court denied QFC's motion to dismiss Cox's second and third causes of action based on chapter 49.52 RCW and Oregon Revised Statutes section 652.120 (ORS) as preempted under section 301 of the LMRA. In November 2016, the court denied QFC's motion to compel arbitration of these same claims.
¶ 12 QFC appeals.
¶ 13 As a preliminary matter, it is critical to our analysis to understand the
¶ 14 RCW 49.52.050(2) provides that "[a]ny employer or officer ... who ... [w]ilfully and with intent to deprive the employee of any part of his or her wages, shall pay any employee a lower wage than the wage such employer is obligated to pay such employee by any statute, ordinance, or contract" is in violation of the statute. The purpose of the statute is to "ensure that the employee realizes the full amount of his or her wages and that the employer does not evade his or her obligation to pay wages ... calculated to effect a rebate of part of them."
¶ 15 Pursuant to ORS section 652.120(1), "[e]very employer shall establish and maintain a regular payday, at which date the employer shall pay all employees the wages due and owing to them." The essence of a claim under this statute is "an assertion that one has not received payment from one's employer of `wages due and owing.'"
¶ 16 Cox contends the claims are statutory wage claims. Cox asserts the rounding policy in conjunction with QFC's other policies and procedures resulted in employees being "consistently and systematically deprived of pay for all straight time and overtime hours they actually work."
¶ 17 QFC takes a diametrically opposed view, that despite being labeled as statutory wage claims, the claims are contractual because Cox seeks damages only available under the CBAs. A claim for unpaid wages necessarily requires a computation of the regular rate of pay multiplied by the amount of compensable time worked. QFC argues Cox's claims are contractual because the CBA is the source of Cox's regular rate of pay and the definition of "compensable time."
¶ 18 Specifically, as to the Washington law claim, QFC points to an interrogatory answer by Cox referring to claimed damages at a rate of $12 per hour. Because Cox's standard rate when working in Washington was less than $12 per hour, QFC infers that he must be depending on some form of premium wage rate contained in the CBAs. But the interrogatory answer does not constitute a binding admission by Cox that his Washington claim depends on the application of a premium wage rate contained in the CBAs. In fact, he denies his claims include any such rates.
¶ 19 QFC also contends that Cox's wage claims under Oregon and Washington law necessarily require a determination of the definition of "compensable time." Although the rounding policy is not contained in the CBAs, QFC argues the policy controls the calculation of wages. Specifically, QFC relies on Cox's acknowledgement of the rounding policy, declarations from human resource executives
¶ 20 If an employer intentionally used "bad math" to manipulate the computation of wages owed to employees, an employee would possess a statutory claim for the withholding of wages. Similarly, intentionally manipulating the application of a facially neutral rounding policy used to compute wages owed, resulting in underpayment, runs afoul of Washington's and Oregon's wage and hour statutes. Cox's claims qualify as statutory wage claims.
¶ 21 QFC first challenges the trial court's denial of the motion to compel arbitration.
¶ 22 We review a trial court's denial of a motion to compel arbitration de novo.
¶ 23 Generally, the Federal Arbitration Act (FAA)
¶ 24 An arbitration agreement does not encompass statutory claims unless the waiver of an employee's right to judicial forum for such claims is "clear and unmistakable."
¶ 25 Here, the grievance and arbitration procedure is contained in article 19 of the Clark County CBA and the Portland CBA. The procedure applies to "[a]ny grievance or dispute concerning the application or interpretation of this Agreement."
¶ 26 QFC argues the separate wage claims provisions found in article 6 of the CBAs support arbitration. Article 6 states, "All claims for back wages or overtime not paid must be presented through the Union to the Employer."
¶ 27 The CBAs do not clearly and unmistakably waive the right to a judicial forum for Cox's statutory wage claims. Therefore, the CBA arbitration provision does not encompass Cox's claims and the trial court did not err in denying the motion to compel arbitration. Given this conclusion, we do not need to address Cox's alternative arguments concerning waiver and unconscionability.
¶ 28 As to the extensive arguments concerning preemption under section 301 of LMRA, that issue is not before us. Preemption was addressed by the trial court when it denied QFC's motion for partial summary judgment in May 2015.
¶ 29 "RAP 2.2 determines whether a particular superior court decision is appealable."
¶ 30 Here, the trial court's interlocutory partial summary judgment order concerning preemption is not appealable as a matter of right because the order does not discontinue the action or prevent final judgment. QFC did not seek discretionary review of the preemption order within 30 days of its entry, and there was no CR 54(b) certification or supporting findings of no just cause for delay.
¶ 31 Neither party has addressed whether an appeal as a matter of right from an order denying a motion to compel arbitration opens the door to include any and all prior interlocutory rulings. But even assuming the preemption ruling could be included in an appeal from a separate motion to compel arbitration, the preemption order was not designated in QFC's notice of appeal.
¶ 32 We will review an undesignated order only if "the order or ruling prejudicially affects the decision designated in the notice."
¶ 33 The consequence of section 301 preemption is to require an employee to exhaust contractual remedies.
¶ 34 Even if a claim was preempted by section 301, there would not be a contractual remedy for the employee to exhaust if the arbitration provision does not extend to the particular claim. Because we have determined the arbitration clause does not encompass Cox's statutory wage claims, the preemption decision does not prejudicially affect the arbitration order, and that ruling is not currently before us.
¶ 35 QFC also contends this court may address preemption under RAP 2.5(a) because it implicates the trial court's jurisdiction. But in
¶ 36 Cox contends QFC's appeal is moot and asks this court to dismiss.
¶ 37 Pursuant to RAP 18.9(c), an appellate court may dismiss a case if it is moot.
¶ 38 This appeal is not moot because if we had determined the trial court erred in denying the motion to compel arbitration, we could have provided effective relief to QFC.
¶ 39 We deny Cox's motion to dismiss.
¶ 40 Cox contends QFC's appeal is untimely. Cox argues QFC's 2016 motion to compel arbitration was an untimely motion for reconsideration of the trial court's preemption decision in the 2015 partial summary judgment order.
¶ 41 To be timely, an appeal must be filed within 30 days of entry of the order being appealed.
¶ 42 Here, QFC filed a notice of appeal of the arbitration order on December 5, 2016. Cox does not provide any compelling authority to advance his argument that the arbitration motion was an untimely motion for reconsideration of the 2015 order. The two motions sought different relief and required the court to consider different bodies of law.
¶ 43 We conclude QFC's appeal is timely because the notice of appeal was filed within 30 days of the entry of the order denying arbitration.
¶ 44 QFC asks this court to take judicial notice of pleadings filed in the removal proceedings before the United States District Court for the Western District of Washington. Specifically, QFC offers Cox's motion to remand, QFC's opposition to remand, Cox's reply, and accompanying declarations and exhibits. But QFC offers the pleadings in response to Cox's argument concerning waiver of QFC's right to arbitration.
¶ 45 Cox seeks an award of fees under RAP 18.9(a), arguing QFC's appeal is frivolous.
¶ 46 RAP 18.9(a) permits this court to award a party attorney fees when the opposing party files a frivolous appeal.
¶ 47 QFC's appeal is not frivolous because it presents debatable issues. We deny Cox's request for fees on appeal.
¶ 48 Therefore, we affirm.
WE CONCUR:
Spearman, J.
Schindler, J.