Article by Annette Idalski and Ray Abilmouna on “Provisions Protect Against Frivolous Overtime Litigation”
In an article published by American Oil & Gas Reporter as a December 2020 Exclusive Story, Atlanta-based Shareholder Annette Idalski and Houston-based Associate Ray Abilmouna discuss the potential issues with seeking to enforce arbitration agreements between staffing companies and their workers.
“Can a non-signatory oil and gas company enforce a worker’s agreement to arbitrate between himself or herself and staffing company?” ask Idalski and Abilmouna. “This question largely depends on the terms of the arbitration agreement, the allegations and claims brought by a worker in a lawsuit, and the laws of the jurisdiction governing the underlying lawsuit or the arbitration agreement’s choice of law provision.”
Idalski and Abilmouna further explain that this area is rather complex and is evolving by jurisdiction. The bottom line is that the arbitration jurisprudence is that the terms of an arbitration agreement matter. It is important for oil and gas companies to evaluate the terms of the arbitration agreements declared by staffing companies to ensure the language is all-encompassing.
“Oil and gas companies should take steps now to protect themselves against these very costly, frivolous overtime claims,” said Idalski and Abilmouna. “At a minimum, companies need to determine whether workers are subject to arbitration agreements with the staffing / invoicing companies and whether the terms of the agreements provide cover.”
To view the full article, click here.