FLSA Collective Action Compelled to Arbitration

Within the last few days, a Southern District of New York Judge granted a commodity broker's motion to compel arbitration of a putative FLSA collection action against the firm. See Arrigo v. Blue Fish Commodities, 09-Civ-07518. There should be little doubt at this point that FLSA collective action complaints may be the proper subject of a properly prepared motion to compel arbitration. Indeed, that proposition is true even if the arbitration forum prohibits class actions, as opposed to collective actions. For that point, see Chapman v. Lehman Brothers, a Southern District of Florida case handled by the author of this Blog, holding that NASD n/k/a FINRA Rules do not preclude arbitration of FLSA collective action claims. See Chapman v. Lehman Brothers, Inc., 279 F. Supp. 2d 1286 (S.D. Fla. 2003).