Four Seasons Healthcare & Wellness Center, LP, a California limited partnershipDownload PDFNational Labor Relations Board - Board DecisionsNov 21, 2019368 N.L.R.B. 117 (N.L.R.B. 2019) Copy Citation 368 NLRB No. 117 NOTICE: This opinion is subject to formal revision before publication in the bound volumes of NLRB decisions. Readers are requested to notify the Executive Secretary, National Labor Relations Board, Washington, D.C. 20570, of any typographical or other formal errors so that corrections can be included in the bound volumes. Four Seasons Healthcare & Wellness Center, LP, A California Limited Partnership and Ana Cruz. Case 31–CA–169143 November 21, 2019 DECISION, ORDER, and NOTICE TO SHOW CAUSE BY CHAIRMAN RING AND MEMBERS KAPLAN AND EMANUEL On June 21, 2017, Administrative Law Judge Ariel L. Sotolongo issued a decision in this case, and on Septem- ber 20, 2017, he issued an Errata. The Respondent filed exceptions and a supporting brief, and the General Coun- sel filed an answering brief. The National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. 1. The judge found, applying the Board’s decisions in D. R. Horton, Inc., 357 NLRB 2277 (2012), enf. denied in relevant part 737 F.3d 344 (5th Cir. 2013), and Mur- phy Oil USA, Inc., 361 NLRB 774 (2014), enf. denied in relevant part 808 F.3d 1013 (5th Cir. 2015), that the Re- spondent violated Section 8(a)(1) of the National Labor Relations Act by maintaining and enforcing a mandatory arbitration agreement that requires employees, as a con- dition of employment, to waive their rights to pursue class or collective actions involving employment-related claims in all forums, whether arbitral or judicial. The Supreme Court issued a decision in Epic Systems Corp. v. Lewis, 584 U.S. __, 138 S. Ct. 1612 (2018), a consolidated proceeding including review of court deci- sions below in Lewis v. Epic Systems Corp., 823 F.3d 1147 (7th Cir. 2016), Morris v. Ernst & Young, LLP, 834 F.3d 975 (9th Cir. 2016), and Murphy Oil USA, Inc. v. NLRB, 808 F.3d 1013 (5th Cir. 2015). Epic Systems concerned the issue, common to all three cases, whether employer-employee agreements that contain class- and collective-action waivers and stipulate that employment disputes are to be resolved by individualized arbitration violate the National Labor Relations Act. Id. at __, 138 S. Ct. at 1619–1621, 1632. The Supreme Court held that such employment agreements do not violate this Act and that the agreements must be enforced as written pursuant to the Federal Arbitration Act. Id. at __, 138 S. Ct. at 1619, 1632. The Board has considered the decision and the record in light of the exceptions and briefs. In light of the Su- preme Court’s decision in Epic Systems, which overrules the Board’s holding in Murphy Oil USA, Inc., we con- clude that the complaint allegations that the arbitration agreement is unlawful based on Murphy Oil must be dismissed.1 2. There remains the separate issue whether the Re- spondent’s arbitration agreement independently violated Section 8(a)(1) of the Act because it would reasonably be construed by employees to restrict their ability to file unfair labor practice charges with the Board. At the time of the judge’s decision and the Respond- ents’ exceptions, the issue of whether the maintenance of a work rule or policy that did not expressly restrict em- ployee access to the Board violated Section 8(a)(1) on the basis that employees would reasonably believe it did would have been resolved based on the prong of the ana- lytical framework set forth in Lutheran Heritage Village- Livonia, 343 NLRB 646 (2004), which held an employ- er’s maintenance of a facially neutral work rule would be unlawful “if employees would reasonably construe the language to prohibit Section 7 activity.” Id. at 647. The Board subsequently overruled the Lutheran Heritage “reasonably construe” test and announced a new standard that applies retroactively to all pending cases. Boeing Co., 365 NLRB No. 154, slip op. at 14–17 (2017). Accordingly, we sever and retain this complaint alle- gation, and we issue below a notice to show cause why the allegation that the arbitration agreement would rea- sonably be construed by employees to restrict employ- ees’ ability to file unfair labor practice charges with the Board should not be remanded to the judge for further proceedings in light of Boeing, including, if necessary, the filing of statements, reopening the record, and issu- ance of a supplemental decision.2 ORDER The complaint allegations that the maintenance and en- forcement of the arbitration agreement unlawfully restrict employees’ statutory rights to pursue class or collective actions are dismissed. Further, NOTICE IS GIVEN that any party seeking to show cause why the issue whether the Respondent’s mandato- ry arbitration agreement unlawfully restricts employee access to the Board should not be remanded to the ad- ministrative law judge must do so in writing, filed with the Board in Washington, D.C., on or before December 5, 2019 (with affidavit of service on the parties to this 1 We therefore find no need to address other issues raised by the Re- spondent’s exceptions to the judge’s decision regarding these allega- tions. 2 See generally Prime Healthcare Paradise Valley, LLC, 368 NLRB No. 10, slip op. at 5 (2019) (explaining the Board’s post-Boeing ap- proach to analyzing allegations that a mandatory arbitration agreement unlawfully restricts access to the Board). DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD2 proceeding). Any briefs or statements in support of the motion shall be filed on the same date. Dated, Washington, D.C. November 21, 2019 ______________________________________ John F. Ring, Chairman ______________________________________ Marvin E. Kaplan, Member ________________________________________ William J. Emanuel Member (SEAL) NATIONAL LABOR RELATIONS BOARD Nicholas Gordon, Esq., for the General Counsel. Kamran Mirrafati, Esq. (Foley & Lardner LLP), for the Re- spondent. DECISION STATEMENT OF THE CASE ARIEL L. SOTOLONGO, Administrative Law Judge. This case is before me based on a stipulated record, pursuant to a joint motion submitted by the parties on January 3, 2017, which I approved on January 9, 2017. At issue is whether Four Seasons Healthcare & Wellness Center, LP, a California Limited Part- nership (Respondent or Employer) violated the Act by main- taining and enforcing an arbitration policy and agreement com- pelling its employees to forgo class actions and submit em- ployment-related disputes to arbitration. The issues presented in this case thus fall squarely within the preview of the Board’s doctrine first announced in D. R. Horton, Inc., 357 NLRB 2277 (2012), enf. denied in relevant part, 737 F.3d 344 (5th Cir. 2013), and further expanded upon in Murphy Oil USA, Inc., 361 NLRB 774 (2014), enf. denied 808 F.3d 1013 (5th Cir. 2015), cert. granted 137 S. Ct. 809 (2017). As indicated by the citation in Murphy Oil, these issues are currently pending be- fore the Supreme Court in light of a split between the circuit courts on these matters.1 The Supreme Court’s ultimate deci- sion, it is anticipated, will finally help resolve numerous cases presently pending before the Board and the courts on these issues. Until then, I am compelled to Board precedent on these matters, as discussed below. I. JURISDICTION In their joint motion (JM), which I approved and granted, the parties agreed to the following jurisdictional facts and conclu- sions: At all material times, Respondent has been a Limited Part- nership with an office and place of business in North Holly- 1 See also Lewis v. Epic Systems Corp., 823 F.3d 1147 (7th Cir. 2016), cert. granted 137 U.S. 809 (2017). wood, California (the facility), where it is engaged in the opera- tion of a skilled nurse facility providing rehabilitation services for the elderly. In conducting its business operations at the facility during the last 12 months, Respondent derived gross revenues in excess of $100,000, and during the 12-month peri- od ending on May 31, 2016, Respondent purchased and re- ceived at the facility good and services valued in excess of $5000 directly from points outside the State of California. Accordingly, the parties agreed, and I conclude, that at all material times, Respondent has been an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act.2 II. FACTS In the JM, the parties stipulated to the following facts, as enumerated below: 1. Since at least about July 1, 2011, and at all materials times, Respondent has maintained a Policy and Agreement, which, if signed by employees, apply to “all disputes relating to [their] employment” as defined in the Policy and prohibits them from “joining or participating in a class action or representa- tive action, acting as a private attorney general or representa- tive of others, or otherwise consolidating a covered claim with the claims of others.” (JM, ¶ 14—and Jt. Exh’s. 1–2.) The Policy reads in relevant part: WHO IS COVERED BY THE ADR POLICY: the ADR Policy will be mandatory for ALL DISPUTES ARISING BETWEEN EMPLOYEES AND THE COMPANY. COVERED DISPUTES: Covered disputes include any dis- pute arising out of or related to my employment, the terms and conditions of my employment and/or the termination of my employment but not limited to, the following: Claims of unlawful harassment, discrimination, retal- iation or wrongful termination that cannot be resolved by the parties or during an investigation by an admin- istrative agency… Claims alleging failure to compensate for all hours worked, failure to pay overtime, failure to pay mini- mum wage, failure to reimburse expenses, failure to pay wages upon termination, failure to provide accu- rate, itemized wage statements, failure to provide meal and/or breaks, entitlement to waiting time pen- alties and/or other claims involving employee wages, including, but not limited to claims brought under the California Labor Code, the applicable wage order, the Fair Labor Standards Act and any other statutory scheme… The following types of disputes are expressly excluded and are not covered by this ADR policy: Disputes or claims that are expressly excluded by statute or are expressly required to be arbitrated under 2 In the JM, the parties also agreed to several procedural facts and matters, such as the dates of the filing and service of the initial charge and amended charges, as well as the dates of the issuance of the com- plaint and the filing of the answer thereto. FOUR SEASONS HEALTHCARE & WELLNESS CENTER, LP, A CALIFORNIA LIMITED PARTNERSHIP 3 a different procedure pursuant to the terms of a team member benefit plan. CLASS ACTION WAIVER: I understand and agree this ADR program prohibits me from joining or participating in a class action or representative action, acting as a private attor- ney general or representative of others, or otherwise consoli- dating a covered claim with the claims of others. (Jt. Exh. 1 pp. 1–2.) Furthermore, the Agreement reads in relevant part: This ADR program is understood to apply to all disputes re- lating to my employment, the terms and conditions of my employment, including but not limited to my compensation, wages, claims alleging failure to compensate for all hours worked, failure to pay overtime, failure to pay minimum wage, failure to reimburse expenses, failure to pay wages up- on termination, failure to provide accurate, itemized wage statements, failure to provide meal and/or breaks, entitlement to waiting time penalties and/or other claims involving em- ployee wages, benefits, discipline, performance evaluations, promotions and transfers, and the termination of my employ- ment, as defined in the ADR Program materials. I agree this ADR Program prohibits me from joining or participating in a class action or representative action, acting as a private attor- ney general or representative of others, or otherwise consoli- dating a covered claim with the claims of others… I UNDERSTAND THAT THIS AGREEMENT IS A WAIVER OF ALL RIGHTS TO A CIVIL COURT ACTION FOR ALL DISPUTES RELATING TO MY EMPLOYMENT, THE TERMS AND CONIDTION OF MY EMPLOYMENT AND/OR THE TERMINATION OF MY EMPLOYMENT WHETHER BROUGHT BY ME OR THE COMPANY; ONLY AN ARBITRATOR, NOT A JUDGE OR JURY, WILL DECIDE THE DISPUTE. IN ADDITION, I UNDERSTAND I AM PROHIBITED FROM JOINING OR PARTICIPATING IN A CLASS ACTION OR REPRESENTATIVE ACTION, ACTING AS A PRIVATE ATTORNEY GENERAL OR REPRESENTATIVE OF OTHERS, OR OTHERWISE CONSOLIDATING A COVERED CLAIM WITH THE CLAIMS OF OTHERS… I also acknowledge and agree that nothing in this ADR policy shall be construed as precluding any employee from filing a charge with a state or federal administrative agency, such as the US Equal Employment Opportunity Commission (“EEOC”) or the National Labor Relations Board… (Jt. Exh. 2 pp. 1–2.)3 2. Since about July 1, 2011, and at all material times, Re- spondent has required employees, including Cruz, to sign the 3 Additionally, the final paragraph of the Policy, under a heading entitled “Severability,” contains the following language: “Nothing in this Alternative Dispute Policy is intended to preclude any employee from filing a charge with…the National Labor Relations Board or any similar federal or state agency seeking administrative resolution. How- ever, any claim that cannot be resolved through administrative proceed- ings shall be subject the procedures of this ADR policy.” (Jt. Exh. 1 pp. 1–3.) Agreement as a condition of employment. (JM, ¶ 15.)4 3. Since about July 1, 2011, and at all material times, Re- spondent has required employees, including Cruz, to sign the Agreement as a condition of employment. (JM, ¶ 15.) 4. On or about November 6, 2015, Respondent filed a notice of motion and motion to compel arbitration, dismiss plaintiffs class claims, and request for stay of proceedings in accord- ance with the terms of the Agreement and Policy in the Supe- rior Court of the State of California, County of Los Angeles, in Case No. BC588960 (State Court Action). (JM, ¶ 16(a).)5 5. Respondent’s motion to compel moved the California State Court to require Cruz to submit the entirety of her State Court Action to binding arbitration pursuant to the terms of Respondent’s Agreement and Policy. (Jt. Exh. 3, p. 2.) 6. On or about December 11, 2015, Respondent filed an amended notice of motion and motion to compel arbitration, dismiss plaintiff’s class claims, and request for stay of pro- ceedings in accordance with the terms of the Agreement and policy in the State Court action. (JM, ¶ 16(b).) 7. Respondent’s amended motion to compel again moved the State Court to require Cruz to submit the entirety of her State Court action to binding arbitration pursuant to the terms of Respondent’s Agreement and Policy. 8. On or about January 15, 2016, Respondent filed a reply to Plaintiff’s opposition to Defendant’s motion to compel arbi- tration, dismiss claims, and request for stay of proceedings. (JM, ¶ 16(c).) 9. Respondent’s reply to plaintiff’s opposition requested that the State Court grant Respondent’s motion to compel arbitra- tion. 10, On or about January 25, 2016, the Honorable Elihu M. Berle of the Los Angeles Superior Court granted Respond- ent’s motion to compel arbitration pursuant to the terms of the agreement and policy noted therein. (JM, ¶ 16(d).) In accordance to the above stipulated facts, the parties in the JM agreed that this case presented the following issues: (1) Whether Respondent violated Section 8(a)(1) of the Act by maintaining a mandatory arbitration policy which requires employees to resolve employment-related disputes exclusive- ly through individual arbitration proceedings and to relinquish any right they have to resolve such disputes through collective or class action. (2) Whether Respondent violated section 8(a)(1) of the Act by 4 “Cruz” refers to Ana Cruz, an employee of Respondent and Charg- ing Party in this case. 5 Cruz had filed a class-action complaint in state court on or about July 22, 2015, against Respondent (and apparently affiliated entities) on behalf of herself and other similarly situated individuals for alleged violations related to rest periods, overtime, and minimum wages, etc. (See GC Exh. 1(f).) Curiously, this underlying fact was left out of the stipulation, but is clearly undisputed inasmuch it was the basis for Respondent’s filing in state court to enforce the mandatory arbitration agreement, which is admitted. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD4 enforcing the Policy and Agreement when it relied upon them in support of its motion to compel arbitration in response to class action litigation. (3) Whether Respondent violated Section 8(a)(1) of the Act by maintaining a mandatory arbitration policy that employees reasonably would believe precludes them from or restricts them in filing unfair labor practice charges with the National Labor Relations Board. The above-described facts are the relevant facts agreed upon by the parties in their stipulation. III. DISCUSSION AND ANALYSIS As briefly mentioned in the preamble, the facts and issues of this case fall within and are governed by the Board’s decisions in D. R. Horton and Murphy Oil, and numerous subsequent cases where the Board affirmed the doctrine espoused in those two cases. With regard to the first and second issues enumerated above, I note that as described in the factual stipulation above (JM ¶ 1), Respondent’s “Alternate Resolution Policy” (Policy) and the accompanying “Agreement To Be Bound By Alternative Dispute Resolution Policy” (Agreement), clearly requires em- ployees to forgo collective claims of any type in both arbitral and judicial forums, including class actions or representative actions, and to submit employment-related disputes to arbitra- tion. Additionally, as described in the factual stipulation (JM, ¶ 2), it is clear that employees are required, as a condition of employment, to sign the Agreement and follow the Policy, the relevant portions of which are posted above, and thus to be bound to their terms. It is by now well-established Board poli- cy pursuant to D. R. Horton and Murphy Oil, as well as many subsequent cases, that any policies that bind or force employees to pursue individual arbitration in employment-related disputes in lieu of other forms of collective actions or remedies violate Section 8(a)(1) of the Act. See, e.g., Century Fast Foods, Inc., 363 NLRB No. 97 (2016); Fuji Food Products, 363 NLRB No. 118 (2016); Haynes Bldg., Services, LLC, 363 NLRB No. 125 (2016). I find it unnecessary to rehash the Board’s rationale in support of such doctrine, for the Board has by now explained its reasons in exquisite detail not only in D. R. Horton and Murphy Oil, but in many subsequent cases as well. Although some Courts of Appeal have disagreed with the Board on this issue and refused to enforce its orders, as pointed out by Re- spondent on brief, other Courts of Appeal have agreed with the Board’s view—including one just in the last few days.6 As discussed in the preamble, this issue is now pending before the Supreme Court. In the meantime, I am bound to follow Board precedent, not that of circuit courts which disagree with the Board. Pathmark Stores, 342 NLRB 378 fn. 1 (2004); Waco, 6 Thus, the 5th and 8th circuit courts have disagreed with the Board. See Murphy Oil USA, Inc. v. NLRB, 808 F.3d 1013, 1018 (5th Cir. 20160; Cellular Sales of Mo., LLC v. NLRB, 824 F.3d 1050 (8th Cir. 2016). The 9th, 7th, and most recently, the 6th circuits have agreed with the Board’s position. See Morris v. Ernst & Young, LLP, 834 F.3d 975, 985–986 (9th Cir. 2016); Lewis v. Epic Sys. Corp., 823 F.3d 1147, 1160 (7th Cir. 2016); NLRB v. Alternative Entertainment, Inc., No. 16- 1385 (6th Cir. May 26, 2017). Inc., 273 NLRB 746, 749 fn. 14 (1984). Accordingly, by main- taining and implementing such policies, as reflected in the Poli- cy and Agreement, Respondent has violated Section 8(a)(1) of the Act. Likewise, by filing a court action—and obtaining a judgment—to enforce such Policy and Agreement, as Respond- ent admitted (in the stipulated facts) it did against employee Cruz, Respondent also violated Section 8(a)(1) of the Act. Cen- tury Fast Foods, supra; Countrywide Financial Corp., 362 NLRB 1331, 1333 (2015). The final issue posed by the instant case (issue No. 3, above), as agreed upon by the parties, is whether under the present circumstances, employees would reasonably believe that the Policy and Agreement would preclude them from or restrict them in filing charges with the Board. If so, under the Board’s ruling in Ralph’s Grocery Co., 363 NLRB No. 128, slip op. 1 (2016), applying the earlier doctrine announced by the Board in Lutheran Heritage Village-Livonia, 343 NLRB 646, 646–647 (2004), Respondent would violate Section 8(a)(1) of the Act.7 The Agreement contains language commonly re- ferred to as a “savings clause,” which, at first glance, would appear to preserve an employee’s right to file charges with the Board (or other Federal or State agencies), notwithstanding the other provisions in the Agreement. Indeed, as described in the agreed-upon facts, such language appears in two places, once in the Agreement and once in the Policy. Despite the existence of similarly-worded or almost identical “savings clauses” in other cases, however, the Board has none- theless ruled that those clauses do not “save” the employer from violating Section 8(a)(1) of the Act, if the scope or reach of the mandatory arbitration language is such that it over- whelms the arguably mitigating effect of the savings clause. See Ralph’s Grocery Co., supra; Lincoln Eastern Management, 364 NLRB No. 16, slip op. 2–3 (2016). Such is the case in the present situation. The language of the Policy, and particularly the Agreement, is sweeping in its breadth, stating in bold, capi- talized letters that it constitutes “A WAIVER OF ALL RIGHTS TO A CIVIL COURT ACTION FOR ALL DISPUTES RELATED TO MY EMPLOYMENT . . . ONLY AN ARBITRATOR, NOT A JUDGE OR A JURY, WILL DECIDE THE DISPUTE . . . ” (underlined emphasis supplied). I additionally note that language similar to the one immediately cited above, albeit in regular-sized letters, dominates and com- mands the vast majority of the text in the Agreement and Poli- cy, while the “savings clauses,” buried toward the end of both documents, constitute but a small fraction of the over-all text in these documents. At minimum, the conflicting messages repre- sent an ambiguity that “must be construed against Respondent as the promulgator of the rule.” Amex Card Services Co., 363 NLRB No. 40, slip op. at 2–3 (2015), citing Lafayette Park Hotel, 326 NLRB 824, 828 (1998). This is particularly so in light of the Board’s view that “rank and file employ- ees…cannot be expected to have the expertise to examine com- pany rules from the legal standpoint.” Ralphs Grocery Co., supra, slip op. at 1, quoting Solar City, 363 NLRB No. 83, slip op at 5 (2015), in turn quoting from Ingram Book Co., 315 7 See also, U-Haul of California, 347 NLRB 375, 377–378 (2006), enfd. 255 Fed.Appx. 527 (D.C. Cir. 2007). FOUR SEASONS HEALTHCARE & WELLNESS CENTER, LP, A CALIFORNIA LIMITED PARTNERSHIP 5 NLRB 515, 516 (1994). Accordingly, I conclude, as the Board did in Ralphs Grocery Co., that the Policy and Agreement’s nominal mention of employees’ right to file Board charges is illusory. Thus, in the context of the sweeping over-all language in the Policy and Agreement, I find that employees would rea- sonably feel inhibited from filing Board charges, and that such Policy and Agreement also violate Section 8(a)(1) of the Act for this additional reason. CONCLUSIONS OF LAW 1. Respondent at all times material herein has been an em- ployer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. Respondent violated Section 8(a)(1) of the Act by main- taining and enforcing a mandatory arbitration agreement (Agreement and Policy) that mandates individual arbitration and precludes class actions by employees for employment- related claims in any forum, arbitral, or judicial. 3. Respondent violated Section 8(a)(1) of the Act by filing a notice of motion and motion to compel arbitration, dismiss plaintiffs class claims, and request for stay of proceedings in accordance with the terms of the Agreement and Policy in the Superior Court of the State of California, County of Los Ange- les, in Case No. BC588960. 4. Respondent violated Section 8(a)(1) of the Act by main- taining and enforcing a mandatory arbitration agreement that employees could reasonably construe to preclude filing of charges with the Board. REMEDY Having found that Respondent has engaged in certain unfair labor practices, I shall order it to cease and desist and to take certain affirmative action designed to effectuate the policies of the Act. As I have concluded that the Agreement and Policy is unlaw- ful, Respondent must revise or rescind the Agreement and Poli- cy and advise their employees in writing that the Agreement and Policy has been revised or rescinded. Further, Respondent shall post notices in all locations where the Agreement and Policy was in effect informing employees of the revision or rescission of the Agreement and Policy, and shall provide said employees with a copy of any such revised documents. Any revision should clarify that such agreement does not bar or restrict employees from seeking class wage and hour actions or any other type of class employment-related actions in any fo- rum, and specifically does not bar or restrict employees from filing charges with the NLRB. Respondent shall further be ordered to notify the State Court in Case No. BC588960 that it no longer opposes the plaintiff’s claims on the basis of the Agreement and Policy, which has been rescinded or revised because it was found unlawful, and to move the court to vacate its order compelling individual arbitra- tion on the basis of the Agreement and Policy.8 Respondent 8 Pursuant to the Board’s D.R. Horton and Murphy Oil rulings, Re- spondent is free to oppose class certification on any basis other that an unlawful arbitration agreement compelling employees to arbitrate em- ployment disputes on an individual basis. As the Board observed, shall also be ordered to reimburse Charging Party Cruz for all reasonable expenses and legal fees, with interest, incurred in opposing Respondent’s unlawful petition to compel individual arbitration in a collective action. Interest shall be computed as prescribed in New Horizons, 283 NLRB 1173 (1987), com- pounded daily as prescribed in Kentucky River Medical Center, 356 NLRB 6 (2010). Upon the forgoing findings of fact and conclusions of law, and upon the entire record, I issue the following recommend- ed.9 ORDER Respondent, Four Seasons Healthcare & Wellness Center, LP, a California Limited Partnership with an office and princi- pal place of business in North Hollywood, California, its offic- ers, agents, successors, and assigns, shall 1. Cease and desist from (a) Maintaining a mandatory and binding arbitration agree- ment that require employees, as a condition of employment, to waive their right to pursue class or collective claims in all fo- rums, whether arbitral or judicial. (b) Maintaining a mandatory and binding Agreement and Policy that employees would reasonably believe bars or re- stricts employees’ rights to file unfair labor practice charges with the National Labor Relations Board or to access the Board’s processes. (c) Filing a petition to enforce its Agreement and Policy to thereby compel individual arbitration and preclude employees from pursuing employment-related disputes with the Respond- ent on a class or collective basis in any forum. (d) In any like or related manner interfering with, restraining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act. 2. Take the following affirmative action necessary to effec- tuate the policies of the Act. (a) Rescind the mandatory and binding Agreement and Poli- cy in all of its forms, or revise them in all of its forms to make clear to employees that the Agreement and Policy do not con- stitute a waiver of their right to maintain employment-related joint, class, or collective actions in all forums, whether arbitral or judicial; and that they do not restrict employees’ right to file charges with the National Labor Relations Board or to access the Board’s processes. (b) Notify all current and former employees who were re- quired to sign the Agreement and Policy in any form that they have been rescinded or revised and, if revised, provide them a copy of such documents. (c) Within 14 days after service by the Region, notify the Superior Court of the State of California in Case No. BC588960 that it has rescinded or revised the mandatory Agreement and Policy upon which it based its motion to dis- employees have Sec. 7 rights to seek class actions, not to have such class actions approved. 9 If no exceptions are filed as provided by Sec. 102.46 of the Board’s Rules and Regulations, the findings, conclusions and recom- mended Order shall, as provided in Sec. 102.48 of the Rules, be adopt- ed by the Board and all objections to them shall be deemed waived for all purposes. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD6 miss Ana Cruz’ collective state action and to compel individual arbitration of her claim, and inform the court that it no longer opposes the action on the basis of the Agreement and Policy. (d) In the manner set forth in this decision, reimburse Ana Cruz for any reasonable attorneys’ fees and litigation expenses that she may have incurred in opposing Respondent’s petition to dismiss her state court action in Case No. BC588960. (e) Within 14 days after service by the Region, post at all its locations in California where notices to employees are custom- arily posted, copies of the attached notice, in English and Span- ish, marked “Appendix.”10 Copies of the notice, on forms pro- vided by the Regional Director for Region 31, after being signed by the Respondent’s authorized representative, shall be posted by the Respondent and maintained for 60 consecutive days in conspicuous places including all places where notices to employees are customarily posted. In addition to physical post- ing of paper notices, the notices shall be distributed electroni- cally, such as by email, posting on an intranet or an internet site, and/or other electronic means, if the Respondent customar- ily communicates with its employees by such means. Reasona- ble steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or covered by any other mate- rial. In the event that, during the pendency of these proceed- ings, the Respondent has gone out of business or closed the facilities involved in these proceedings, the Respondent shall duplicate and mail, at its own expense, a copy of the notice to all current employees and former employees employed by the Respondent at any time since February 4, 2016. (f) Within 21 days after service by the Region, file with the Regional Director for Region 31, a sworn certification of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply. Dated, Washington, D.C. June 21, 2017 APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated Federal labor law and has ordered us to post and obey this no- tice. FEDERAL LAW GIVES YOU THE RIGHT TO Form, join, or assist a union Choose representatives to bargain with us on your be- half Act together with other employees for your benefit and protection Choose not to engage in any of these protected activi- ties. 10 If this Order is enforced by a judgment of the United States court of appeals, the words in the notice reading “Posted by Order of the National Labor Relations Board” shall read “Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board.” WE WILL NOT maintain a mandatory and binding Agreement and Policy that our employees reasonably would believe bars or restricts their right to file charges with the National Labor Rela- tions Board or to access the Board’s processes. WE WILL NOT maintain and/or enforce a mandatory Agree- ment and Policy that requires our employees, as a condition of employment, to waive the right to maintain class or collective actions in all forums, whether arbitral or judicial. WE WILL NOT in any like or related manner interfere with, re- strain, or coerce you in the exercise of the rights listed above. WE WILL rescind the mandatory and binding Agreement and Policy in all of its forms, or revise it in all of its forms to make clear that the Agreement and Policy does not constitute a waiv- er of your right to maintain employment-related joint, class, or collective actions in all forums; that it does not restrict your right to file charges with the National Labor Relations Board or to access the Board’s processes; and does not prohibit you from discussing arbitrations with each other. WE WILL notify all current and former employees who were required to sign the Agreement and Policy in all of its forms that the Agreement and Policy has been rescinded or revised and, if revised, provide them a copy of the revised documents. WE WILL notify the court in which Ana Cruz filed her collec- tive state claim that we have rescinded or revised the mandato- ry Agreement and Policy upon which we based our petition to dismiss her collective state claim and compel individual arbitra- tion, and WE WILL inform the court that we no longer oppose Ana Cruz’s collective claim on the basis of that Agreement and Policy. WE WILL reimburse Ana Cruz for any reasonable attorneys’ fees and litigation expenses that he may have incurred in op- posing our motion to dismiss her collective state claim and compel individual arbitration. FOUR SEASONS HEALTHCARE & WELLNESS CENTER, LP, A CALIFORNIA LIMITED PARTNERSHIP The Administrative Law Judge’s decision can be found at www.nlrb.gov/case/31-CA-169143 or by using the QR code below. Alternatively, you can obtain a copy of the decision from the Executive Secretary, National Labor Relations Board, 1015 Half Street, S.E., Washington, D.C. 20570, or by calling (202) 273-1940. Copy with citationCopy as parenthetical citation