Worker not required to arbitrate injury claims

An employee was not required to arbitrate his personal injury claims with a McDonald’s franchisee, a Texas appeals court held Wednesday.

In Stagg Restaurants LLC v. Serra, the Texas Court of Appeals, 4th District, in San Antonio found that Stagg Restaurants, a San Antonio franchisee of McDonalds, failed to show that its employee, Fred Serra, received notice of its arbitration policy in order to compel him to arbitrate claims relating to an injury he sustained at the workplace.

Stagg claimed that Mr. Serra received an occupational injury plan on July 19, 2014, containing an agreement to arbitrate disputes arising from personal injuries sustained on the job. Mr. Serra testified that he never received the plan nor was notified about the arbitration provision. A trial court heard and denied the motion, and Stagg appealed.

The appeals court affirmed the lower court’s decision. Although Stagg argued that the arbitration policy outlined within its occupational injury plan included a mandatory condition of employment that the employee automatically accepted and agreed to when continuing employment with the restaurant, the court noted that Mr. Serra’s employment documents did not appear to include the occupational injury plan, and a checklist of “initial orientation” documents also did not include the injury plan.

The court said that while some of the forms mentioned the occupational injury plan, they do not state whether Mr. Serra received a copy, or indicate whether he agreed to it, or mention the arbitration agreement contained in the plan.

The court held that because of the conflicting evidence as to whether Mr. Serra received notice of the arbitration policy, Stagg has the burden to prove at an evidentiary hearing that the employee received proper notice. As a result, the appeals court affirmed the trial court’s order denying Stagg’s motion to compel arbitration.

Stagg Restaurants could not be reached for comment.