Macy's obtains favorable Second Circuit ruling in Title VII case challenging company policy for arbitrating employment disputes

Client(s) Macy's, Inc.

Jones Day obtained a reversal for Macy's, Inc. on its appeal to the Second Circuit of a ruling that threatened its company-wide policy for arbitrating employment disputes. Since 2004, Macy's has had an alternative dispute resolution policy under which all employment disputes are subject to binding arbitration unless the employee at issue affirmatively opted out of arbitration during a specified time period. In this Title VII case, the plaintiff challenged this policy, arguing that a Macy's employee could not be deemed to have agreed to arbitration without expressly agreeing to arbitrate. The United States District Court for the Eastern District of New York denied Macy's motion to compel arbitration, holding that an employee's failure to opt out could not bind her to arbitrate. See 506 F. Supp. 2d 156 (E.D.N.Y. 2007). Jones Day entered the case on appeal, and obtained a ruling from the Second Circuit reversing the district court and directing an order compelling plaintiff to arbitrate.

Manigault v. Macy's East, LLC, 318 Fed.Appx. 6, 2009 WL 765006 (2d Cir. 2009)