Ogletree Deakins: Florida Court Holds Arbitration Agreement with Fee-splitting Provision Unenforceable in FLSA Case | Practical Law

Ogletree Deakins: Florida Court Holds Arbitration Agreement with Fee-splitting Provision Unenforceable in FLSA Case | Practical Law

This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses the Florida Second District Court of Appeal's decision in Hernandez v. Colonial Grocers, Inc., holding that an arbitration agreement that awards attorneys' fees to the prevailing party in Fair Labor Standards Act (FLSA) disputes is unenforceable. The court reasoned that the fee-splitting provision exposes the plaintiff to potential liability that would not occur if he pursued his FLSA claims in court, and that it would cause a chilling effect that defeats the remedial purpose of the FLSA.

Ogletree Deakins: Florida Court Holds Arbitration Agreement with Fee-splitting Provision Unenforceable in FLSA Case

by Ogletree, Deakins, Nash, Smoak & Stewart, P.C.
Published on 04 Nov 2013Florida, United States
This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses the Florida Second District Court of Appeal's decision in Hernandez v. Colonial Grocers, Inc., holding that an arbitration agreement that awards attorneys' fees to the prevailing party in Fair Labor Standards Act (FLSA) disputes is unenforceable. The court reasoned that the fee-splitting provision exposes the plaintiff to potential liability that would not occur if he pursued his FLSA claims in court, and that it would cause a chilling effect that defeats the remedial purpose of the FLSA.