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Arbitration Agreement Enforceable Despite Limitation on Damages and Mutual Fee Shifting, New Jersey District Court Rules

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In Morando v. Netwrix Corp., the employer moved to compel arbitration of an employee’s NJLAD and FLSA claims pursuant to an arbitration agreement the plaintiff signed when he began working. Civ. No. 25-7-6183 (D.N.J. April 24, 2012). The court held that the arbitration agreement was not unconscionable even though it contained provisions allowing the arbitrator to award reasonable attorneys’ fees and costs to the prevailing party (as opposed to just “the prevailing plaintiff”), and even though it also precluded the arbitrator from awarding punitive or exemplary damages of any kind.

In Morando v. Netwrix Corp., the employer moved to compel arbitration of an employee’s NJLAD and FLSA claims pursuant to an arbitration agreement the plaintiff signed when he began working. Civ. No. 25-7-6183 (D.N.J. April 24, 2012). The court held that the arbitration agreement was not unconscionable even though it contained provisions allowing the arbitrator to award reasonable attorneys’ fees and costs to the prevailing party (as opposed to just “the prevailing plaintiff”), and even though it also precluded the arbitrator from awarding punitive or exemplary damages of any kind.

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Employment Law , Wage and Hour

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