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Monday, September 19, 2011

AT&T Aftermath: Sleazy Employment Contract Uses Arbitration to Escape Paying Minimum Wage

The Corporate Court's decision in AT&T Mobility v. Concepcion set a dangerous precedent, and is forcing everyday Americans out of the courthouse. AFJ takes a look at some of the cases impacted by the decision.

Case: D’Antuono v. Service Road Corp. 

Dina D’Antuono was an exotic dancer at a club in Connecticut.  She and other dancers, after working for a few months, were taken aside during a shift and told they needed to sign a contract.  It said the dancers weren’t entitled to minimum wage and worked only for tips.  It also contained an arbitration clause that banned class actions, shifted fees onto losing plaintiffs, and imposed a six-month time limit on filing claims.  D’Antuono sued the club owners under the Fair Labor Standards Act to recover wages she and other dancers were owed.  Citing ConcepciĆ³n, the judge ruled that it didn’t matter whether or not the dancers would, as a practical matter, be able to vindicate their rights through arbitration, and threw the case out of court.

Click here for more on the aftermath of the Court's AT&T decision.

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