District Court Judge Orders Status Reports on Arbitration Proceedings Between Ritz-Carlton Hotel and Former Employee
In 2000, Ritz-Carlton hired the plaintiff as a hotel manager, at which time he received the standard training that all new hires receive. After completing the training, he initially worked as a PBX manager until the position was eliminated. He was then transferred to the accounting department, and eventually became a Banquet Captain, a position which he held for nine years. After he began receiving complaints about his job performance, he was terminated in 2013 at the age of 53. The plaintiff alleged that Ritz-Carlton purposefully wanted to get rid of older workers, and that he was fired because of his age. Eastern District of Pennsylvania Judge Gerald J. Pappert suspended the case in August of 2018 pending an arbitration session. In April, Judge Pappert ordered both parties to provide regular status updates on the progress of the arbitration proceedings.
Part of Ritz-Carlton’s training involves providing new hires with an Employee Agreement, which the plaintiff and the Assistant Director of Human Resources signed. The Employee Agreement describes the hotel’s three-stage procedure for resolving conflicts in the workplace. The first stage involves attempting to resolve the issue with the worker’s immediate supervisor, division head, or general manager. If a resolution cannot be reached, the employee proceeds to stage two, which involves seeking help through a Peer Review Panel. If a resolution still cannot be reached, the employee moves to stage three which is arbitration. The plaintiff completed this three-stage procedure.
However, instead of proceeding to arbitration, the plaintiff filed a complaint in August of 2017, and the defendant filed a motion to dismiss, arguing that the plaintiff’s claims should be dismissed on the grounds that he agreed to arbitrate the age discrimination claim. The motion was granted and the Court compelled arbitration, while staying the case in the meantime. Judge Pappert cited the U.S. Court of Appeals for the Third Circuit precedent in Great W. Mortg. Corp. v. Peacock, saying that any doubts about what issues should be heard in arbitration should be resolved through arbitration.
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