JAMES LAWRENCE KING, District Judge.
On June 26, 2012, Plaintiff, a tax preparer for Defendant, filed a one-count Complaint seeking to recover damages for uncompensated overtime wages. (DE # 1, ¶ 1). Specifically, Plaintiff alleged that he worked on average 60 hours per week without being compensated at not less than time and a half for all hours exceeding 40, as required by the Fair Labor Standards Act ("FLSA"). (Id. at ¶ 8); see also 29 U.S.C. § 207(a)(1). Unlike many FLSA actions, Plaintiff did not sue on behalf of himself and similarly situated individuals. Plaintiff seeks only his own unpaid compensation, from the moment he was hired in 1990 as a tax preparer to present "and/or from 3 (three) years back from the date of the filing of this complaint plus additional time for weeks the statute of limitations was tolled by a prior opt-in notice filed in another matter." (Id. at ¶ 9).
This Court had earlier decided, in the related cases of Greene et al. v. H & R Block Eastern Enterprises, No. 10-21663-CIV-KING (S.D.Fla. Filed May 21, 2010), and Illano v. H & R Block Eastern Enterprises, No. 09-22531-CIV-KING (S.D. Fla. Filed Aug. 27, 2009), that H & R Block tax associates could not litigate either as a class action or national collective action. The Illano case, however, was permitted to proceed as a collective action on behalf of similarly situated tax preparers in Miami-Dade County, Florida. Greene was dismissed with prejudice on July 26, 2010 because it was duplicative of the Illano litigation. (No. 10-21663-CIV-KING, DE # 38). A final settlement was approved in Illano on September 28, 2011. (No. 09-22531-CIV-KING, DE # 217).
Shortly after settling Illano, H & R Block provided Plaintiff with a new employment agreement; it contained an arbitration clause. See (Exhibit A, DE # 9-1) Plaintiff signed the agreement on November 5, 2011. The Complaint does not mention the employment agreement or arbitration clause. But on August 22, 2012,
The Federal Arbitration Act ("FAA") governs the validity of an arbitration agreement. The FAA evinces "the strong federal policy in favor of enforcing arbitration agreements." See Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 217, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985). Accordingly, "covered arbitration agreements are `valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.'" Community State Bank v. Strong, 651 F.3d 1241, 1250 n. 7 (11th Cir.2011) (quoting 9 U.S.C. § 2).
Before a court may require parties to arbitrate, the movant must establish that there is a valid arbitration agreement and that the disputed claims are subject to arbitration. See Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 626, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985); Lambert v. Austin Ind., 544 F.3d 1192, 1195 (11th Cir.2008). In making a determination as to the first factor, the written arbitration agreement must be "enforceable `under ordinary state-law' contract principles." Lambert, 544 F.3d at 1195. When these factors are satisfied, the court is required to "either stay or dismiss a lawsuit and to compel arbitration." Id.
As a matter of contract, "a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit." AT & T Techs., Inc. v. Communications Workers of Am., 475 U.S. 643, 648, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986) (internal quotation marks omitted). A party seeking to avoid arbitration must either prove waiver of the right to arbitration, Ivax Corp. v. B. Braun of America, Inc., 286 F.3d 1309, 1315-16 (11th Cir. 2002), or must unequivocally deny that the agreement to arbitrate was made and offer evidence to substantiate the denial. Wheat, First Sec, Inc. v. Green, 993 F.2d 814, 817 (11th Cir. 1993).
In reviewing the instant Motion, the Court's discussion turns first to the existence of an enforceable arbitration agreement between Plaintiff and Defendant. The Court then evaluates the arbitrability of each of Plaintiff's claims. Finally, the Court analyzes the propriety of compelling arbitration and dismissing the case, rather than staying litigation pending the outcome of arbitration.
Under ordinary contract law, an arbitration agreement is enforceable if it meets the applicable state's requirements of a validly formed contract—e.g. offer, acceptance, consideration—and the terms are not unconscionable. See Mitsubishi Motors, 473 U.S. at 627, 105 S.Ct. 3346; Caley v. Gulfstream Aerospace Corp., 428 F.3d 1359, 1368 (11th Cir.2005). The parties do not dispute the existence of an enforceable arbitration clause included in the employment agreement that Plaintiff signed in November 2011. Moreover, Plaintiff does not argue that the employment agreement, which contained a provision enabling Plaintiff to opt-out of the arbitration clause within 30 days of signing the agreement and without effecting the other terms of the agreement, was unconscionable. Plaintiff merely disputes the scope of the arbitration clause. Accordingly, the Court proceeds to determining which of Plaintiff's claims are subject to arbitration.
As a matter of contract law, the scope of an arbitration agreement depends
In the instant action, the plain language of the arbitration clause is unambiguously broad:
(Exhibit A, ¶ 19(b), DE # 9-1, pp. 4-5). None of the Excluded Claims found in subparagraph (c) are implicated by Plaintiff's briefings or pleadings.
As noted, Plaintiff does not dispute the enforceability of the arbitration clause nor that FLSA claims for unpaid wages fall within the scope of Covered Claims. At issue is which of Plaintiff's FLSA claims must be submitted to arbitration.
Plaintiff's Complaint seeks unpaid overtime wages accrued since June 26, 2009, some 28 months before Plaintiff signed the Agreement. Plaintiff, in his Response, argues that the arbitration clause cannot apply to claims that accrued before he signed the agreement to arbitrate and, therefore, only the seven and a half months that Plaintiff worked between signing the Agreement and filing the above-styled action can be compelled to arbitration.
The Court disagrees. The language of the Agreement is unambiguously expansive. Plaintiff agreed to arbitrate "any and all claims or disputes" between Plaintiff and Defendant that in any way relate to his hiring, employment, or termination.
Because all of Plaintiff's claims are subject to arbitration, the Court's analysis proceeds to whether the instant action should be stayed or dismissed. However, before considering Defendant's Motion to Dismiss, the Court must determine whether the employment agreement and arbitration clause, which were not referenced in the Complaint, may be considered upon a Motion to Dismiss. The Court notes that Defendant's Motion does not indicate under which Federal Rule of Civil Procedure 12(b) provision Defendant seeks dismissal. See Fed.R.Civ.P. 12(b). That is significant because different Rule 12(b) vehicles for dismissal have different standards regarding when matters outside the pleadings may be considered without converting a motion to dismiss into a motion for summary judgment.
If the motion was brought under Rule 12(b)(1) for lack of subject matter jurisdiction, then the Court may consider factual matters outside the pleadings, such as the employment agreement. See Carmichael v. Kellogg, Brown & Root Services, Inc., 572 F.3d 1271, 1279 (11th Cir.2009) ("[W]here a defendant raises a factual attack on subject matter jurisdiction, the district court may consider extrinsic evidence such as deposition testimony and affidavits."). If the Motion was brought under Rule 12(b)(6) for failure to state a claim, then the Court may consider the employment agreement because it is central to Plaintiff's claims for unpaid compensation and its authenticity is not disputed. Horsley v. Feldt, 304 F.3d 1125, 1134 (11th Cir.2002); see also 5 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1327, at 762-63 (2d ed. 1990) ("[W]hen the plaintiff fails to introduce a pertinent document as part of her pleading . . . the defendant may introduce the document as an exhibit to a motion attacking the sufficiency of the pleading."). Holding otherwise would enable Plaintiff to "evade dismissal . . . simply by failing to attach to his complaint a document that proved his claim has no merit." Tierney v. Vahle, 304 F.3d 734, 738 (7th Cir.2002). Thus, in the instant case the Court may consider the employment agreement regardless of the applicable procedural vehicle for a motion to dismiss involving an arbitration clause.
In evaluating whether to dismiss the case, the Court looks to the language of the FAA. Section 3 states that a district court "shall" stay proceedings pending arbitration upon motion of one of the parties. 9 U.S.C. § 3. However, several circuits have said that this mandatory language does not apply when all claims are arbitrable. See, e.g., Choice Hotels Int'l, Inc. v. BSR Tropicana Resort, Inc., 252 F.3d 707, 709-10 (4th Cir.2001) (dicta); Bercovitch v. Baldwin School, Inc., 133 F.3d 141, 156 n. 21 (1st Cir.1998); Alford v. Dean Witter Reynolds, Inc., 975 F.2d 1161, 1164 (5th Cir.1992). The Eleventh Circuit, at one point, suggested only a stay of litigation is appropriate. See Bender v. A.G. Edwards & Sons, Inc., 971 F.2d 698 (11th Cir.1992).
Courts within this District have chosen either course. See Bhim v. Rent-A-Center, Inc., 655 F.Supp.2d 1307 (S.D.Fla.2009). This Court agrees with the line of opinions that have compelled arbitration and dismissed the case where all claims were subject to arbitration. See, e.g., Kivisto v. Nat'l Football League Players Assoc., No. 10-24226-CIV, 2011 WL 335420 (S.D.Fla. Jan. 31, 2011); Olsher Metals Corp. v. Olsher, No. 01-3212-CIV, 2003 WL 25600635 (S.D.Fla. March 26, 2003). "A case in which arbitration has been compelled may be dismissed in the proper circumstances, such as when all the issues raised in . . . court must be submitted to arbitration." Olsher, 2003 WL 25600635 at *9 (internal quotation marks omitted). "The weight of authority clearly supports dismissal of the case when all of the issues raised in the district court must be submitted to arbitration." Caley, 333 F.Supp.2d at 1379 (quoting Alford, 975 F.2d at 1164).
Because all of Plaintiff's claims are subject to arbitration and because "any judicial review of the arbitration decision concerning these claims will be limited by the provisions of the FAA," the Court exercises its discretion to dismiss the case with prejudice. Olsher, 2003 WL 25600635 at *9 (citing Alford, 975 F.2d at 1164).
Accordingly, after careful consideration and the Court being otherwise fully advised, it is