This decision affirms an order compelling arbitration of an employee’s wage and hour suit against the staffing agency that hired him (and with which he had an employment contract containing an arbitration clause) and Pexco, the entity the staffing agency assigned him to work for. Though Pexco was not a party to the contract containing the arbitration clause, it could invoke that clause because the claims plaintiff raised arose out of his employment contract and were intimately intertwined with it, thus estopping the employee from asserting Pexco was not a party to the agreement. This was true even though plaintiff sued for Labor Code violations, not breach of contract. Also, distinguishing Barsegian v. Kessler & Kessler (2013) 215 Cal.App.4th 446, this decision holds that, as alleged joint employers Pexco and the staffing agency were agents of each other with respect to plaintiff’s claims. So Pexco could invoke the arbitration clause as the staffing agency’s agent.
California Court of Appeal, Fourth District, Division 3 (Ikola, J.); April 24, 2017 (published May 16, 2017); 2017 WL 2123937