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As part of our continuing process to review best practices, Alorica regularly benchmarks its employment practices against those prevailing elsewhere in our industry, and in the business world generally. The use of arbitration to resolve a dispute, instead of the costly and time-consuming court litigation process, has become prevalent. Alorica for several years now has entered into pre-dispute arbitration agreements with its new hires. The company intends now to expand the use of such agreements with employees who do not now have them.
In this packet you are receiving several documents pertaining to this change. Enclosed are the arbitration agreement; FAQs regarding the mutual agreement to arbitrate claims; and the arbitration agreement opt-out form. Please take the time to carefully review each document.
The agreement is voluntary. However, current employees automatically will be deemed to have consented to the agreement if they continue to work for Alorica after January 17, 2022, unless they sign and submit the attached “Arbitration Agreement Opt-Out Form” in the manner described below.
Therefore, it is important that you carefully read this memo and all of the attached documents.
What is the New Agreement?
The agreement provides that you and Alorica mutually agree to resolve, on an individual basis, disputes through arbitration rather than in court. By agreeing to resolve disputes through arbitration, you and Alorica are giving up the right to a court or jury trial on claims covered by the agreement.
Instructions for Those Who Want To “Opt Out” of the Agreement
If you do not want the attached agreement to apply to you, you must complete and sign the attached
“Arbitration Agreement Opt-Out Form” and submit it electronically to [email protected] such that it is received no later than 11:59 PM Eastern Standard Time on January 17, 2022.
If you continue to work for Alorica after January 17, 2022, and do not timely opt out of (i.e., decline) the agreement, you will be required to resolve disputes that you may have with Alorica through arbitration (and vice versa) in accordance with the agreement.
If you previously entered into an arbitration agreement with Alorica, submitting the Opt-Out Form will not cancel that prior agreement or affect your obligation (and Alorica’s obligation) to arbitrate disputes pursuant to it. Submitting the Opt-Out Form only prevents creation of the new arbitration agreement attached.
This process is voluntary. Alorica will not retaliate or tolerate coercion of or retaliation against anyone in connection with the decision whether to opt out. If you believe you are being coerced or retaliated against, please promptly contact Alorica’s reporting hotline at www.theintegritycenter.com or 1-800- 250-5189.
Questions
Please carefully review the FAQs attached to this memo. If you have any questions about the attached agreement and/or Opt-Out Form, please contact [email protected]. You also should discuss the decision whether to accept the agreement or submit an Opt-Out form with private legal counsel if you wish to do so.
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AGREEMENT REGARDING ARBITRATION OF DISPUTES Agreement
Alorica Inc. (“Company”) and I mutually consent to the resolution by arbitration (except as provided below), under the JAMS Employment Arbitration Rules and Procedures (which are available at jamsadr.com, or from the Company upon my request), of all claims (common law or statutory) that the Company might have against me, or that I might have against the Company, its subsidiary and affiliated companies, the directors, employees or agents of any such company, and all successors and assigns of any of them.
The Company will be responsible for paying any filing fee and the fees and costs of the Arbitrator;
provided, however, that if I am the party initiating the claim, I will contribute an amount equal to the filing fee to initiate a claim in the court of general jurisdiction in the state in which I am (or was last) employed by the Company.
The Company and I waive the right to have a court or jury trial on any arbitrable claim; provided, however, that either the Company or I may seek temporary equitable relief in aid of arbitration (e.g., a temporary restraining order or preliminary injunction) from a court of competent jurisdiction. The Federal Arbitration Act shall govern this Agreement, or if for any reason the FAA does not apply, the arbitration law of the state in which I rendered services to the Company shall govern. Notwithstanding any provision of the JAMS Rules, arbitration shall occur on an individual basis only. I waive the right to initiate, participate in, or recover through, any class or collective action.
A court of competent jurisdiction (and not an arbitrator) shall resolve any dispute about the formation, validity, or enforceability of any provision of this Agreement. If any provision or provisions of this Agreement are held to be unenforceable, they shall be severed, and the balance of this Agreement enforced. If, notwithstanding the preceding sentence, a court of competent jurisdiction declares this Agreement unenforceable, then any prior arbitration agreement between the parties shall be preserved and enforced.
To the maximum extent permitted by law, the arbitrator shall award the prevailing party its costs and reasonable attorney’s fees; provided, however, that the arbitrator at all times shall apply the law for the shifting of costs and fees that a court would apply to the claim(s) asserted.
Nothing in this Agreement prevents me from filing or recovering pursuant to a complaint, charge, or other communication with any federal, state or local governmental or law-enforcement agency, including but not limited to the National Labor Relations Board.
The following claims are not covered by this Agreement: claims for workers’ compensation or unemployment compensation benefits; claims that as a matter of law cannot be subject to arbitration (after application of Federal Arbitration Act preemption principles); and claims under an employee benefit or pension plan that specifies a different arbitration procedure.
This Agreement shall remain in effect notwithstanding the termination of my employment with the Company.
3 Bellwether Arbitration Procedures
Bellwether procedures shall be used when more than 10 cases pending at the same time present substantially similar or overlapping allegations of fact or law. A court of competent jurisdiction, and not JAMS or an arbitrator, shall resolve any dispute over whether these bellwether procedures apply to any group of claims.
i. Purpose and Rationale
A large number of arbitration cases with similar allegations will impose excessive transaction costs regardless of the cases’ merit or lack of merit. It also is logistically difficult or impossible to arbitrate simultaneously large numbers of substantially similar cases. The parties therefore agree to use bellwether litigation procedures similar to those that courts use in mass-tort cases, based on the judiciary’s experience that, after one or a few cases are tried to verdict, most or all of the other cases settle or otherwise resolve themselves.
ii. Procedures
To the maximum extent permitted by law, no more than 10 cases will be active at any one time. All remaining cases will be stayed, with the statute of limitations tolled. As soon as one of the original active cases is resolved (by decision, settlement, or otherwise), a stayed arbitration shall replace it on the list of 10 active cases. Except as provided below, cases shall be placed on or moved to the active list in the order demands for arbitration are first received. Until a case is on or is moved to the list of 10 active cases, the sum I paid to initiate a case shall be refunded, and the Company shall have no obligation to pay any JAMS or arbitrator fees.
iii. Hardship
If I claim exceptional hardship from any delay pursuant to the bellwether procedure, I may petition the Company to waive the 10-case limit for that case. If the Company does not agree, I may petition JAMS to place my case on the list of 10 active cases, on the ground that delay will impose exceptional hardship. If JAMS finds exceptional hardship and grants my petition, JAMS shall (based on its determination of relative hardship) remove one other case from the list of 10 active cases and place it at the head of the list of stayed cases. Under no circumstances shall JAMS place more than 10 cases into active status. If more than 10 hardship applications are granted, JAMS shall determine which 10 cases shall proceed first, based on its determination of relative hardship.
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QUESTIONS AND ANSWERS ABOUT THE AGREEMENT REGARDING ARBITRATION OF DISPUTES
1. Q. What is arbitration?
A. Arbitration is an alternative method of resolving legal disputes. It provides for the same kinds of remedies that a judge or jury can award, but an arbitrator (rather than a judge or jury) is the decisionmaker.
2. Q. If I consent to (i.e., do not opt out of) the Agreement, am I giving up any substantive legal rights?
A. No, your substantive legal rights remain intact. The Agreement just provides that you and Alorica mutually agree to resolve specified disputes individually and through arbitration, rather than in court. By agreeing to resolve disputes though arbitration, you and Alorica will not have a court or jury trial on claims covered by the Agreement.
3. Q. Why does Alorica seek arbitration agreements?
A. Arbitration of disputes, in Alorica’s opinion, is preferable to costly and time-consuming litigation in court.
4. Q. Why is Alorica rolling out new arbitration agreements now for those who already have them?
A. Alorica has employment arbitration agreements with some but not all employees. In an effort to be consistent across the organization and reflect recent developments in the law, Alorica is rolling out a new employment arbitration agreement to all employees.
5. Q. What happens if I don’t do anything?
A. As a current employee employed with Alorica after January 17, 2022, you will automatically have consented to the Agreement unless you timely submit the
“Arbitration Agreement Opt-Out Form”.
6. Q. How do I opt out of the Agreement?
A. To opt out, complete and sign the “Arbitration Agreement Opt-Out Form” and email a scanned copy or photo of the completed form to [email protected] by no later than 11:59 PM Eastern Standard Time on January 17, 2022. Please note that if you entered into a previous arbitration agreement with Alorica, submitting the Opt-Out Form will not cancel that agreement. Submitting the Opt-Out Form only prevents you and Alorica from being bound to this new Agreement.
7. Q. What should I do?
A. That is entirely up to you. The Agreement is voluntary. You will not be retaliated against and your job and compensation will not be affected if you submit the Opt-Out
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Form. Your supervisor will not be informed of whether or not you opt out of (i.e., decline) the Agreement.
8. Q. Do I already have an arbitration agreement with Alorica?
A. If you would like a copy of the arbitration agreement that you previously signed (if any), please contact [email protected]. However, keep in mind that the deadline to opt out of the Agreement is January 17, 2022, regardless.
9. Q. May I consult with an attorney?
A. Of course. The arbitration agreement is a legal document, and you are free to consult with an attorney of your choosing.
10. Q. What if I later change my mind?
A. You cannot cancel or modify the Agreement unless Alorica and you agree to do so in writing.
11. Q. What kind of claims are subject to arbitration?
A. All legal claims of any kind, except as specified in the Agreement.
12. Q. Does this mean that if, for example, I have a dispute with Alorica over a matter unrelated to my employment, my claim over that will be arbitrated?
A. Yes, the Agreement covers claims that are unrelated to your employment.
13. Q. Does this Agreement require individualized dispute resolution and prohibit class and multi-party actions?
A. Yes, Alorica has designed the Agreement so that disputes are resolved individually rather than on a group basis. On this issue, as with all others, if you have further questions, you should consult your private legal counsel.
14. Q. Does the Agreement require arbitration of a claim that I have already brought against Alorica, or a class or representative claim that someone else has already brought on my behalf?
A. No, it does not. However, that pending claim may be subject to a prior arbitration agreement signed by you and Alorica.
15. Q. Is Alorica agreeing to arbitrate claims that it may have against me?
A. Yes.
16. Q. What if, because of the nature of a claim, I want to go immediately to a court for a temporary restraining order or injunction?
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A. In that case any party (an employee or Alorica itself) may seek temporary court orders to protect the party’s rights until the arbitration hearing has concluded. The final decision in the case will be made by the arbitrator.
17. Q. Who are the arbitrators who would decide cases?
A. The arbitrators are from the professional arbitration firm known as JAMS. The arbitrators are experienced professionals. The employee will take part in selecting the actual arbitrator for a particular case.
18. Q. Can an arbitrator award me the same kind of damages that a court or jury could?
A. Yes, your remedies will be exactly the same as they would be in court.
19. Q. If I am terminated and I dispute it in arbitration, does the arbitrator have the power to reinstate me?
A. The arbitrator will have exactly the same powers to give you relief that a court would have in deciding the same kind of individual claim. For example, in a discrimination lawsuit, a person who was discriminatorily discharged may be entitled in certain circumstances to reinstatement and damages. The arbitrator in that case would have the same power to reinstate and award damages that a court or jury would have.
20. Q. Do I have to hire an attorney to go to arbitration?
A. This decision is entirely yours. You are not required to be represented by counsel, but you may feel that counsel can help you present your case.
21. Q. If I hire counsel and win my case, does Alorica have to pay my attorneys’ fees?
A. That depends on the kind of legal claim brought. In general, both sides pay their own attorneys in the first instance. In certain kinds of cases, the prevailing party is entitled to attorneys’ fees. The same attorneys’ fees rules that apply in court will apply in arbitration.
22. Q. Will I have the same opportunity to take depositions and engage in legal discovery?
A. Both parties will have the right to take depositions and request production of documents, as determined by the arbitrator.
23. Q. Can cases still be settled?
A. Yes, the same as in a lawsuit.
24. Q. This sounds like a "union" arrangement; does it have anything to do with unionization?
A. No. What we have created is a system of arbitration without the need for a union.
25. Q. Can arbitration decisions be appealed?
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A. Only on limited grounds. The arbitration decision is normally final and binding on the parties.
26. Q. Are the arbitrators on Alorica payroll?
A. No, they are independent providers of alternative dispute resolution services.
27. Q. Who pays for what?
A. Arbitrator – The Company will pay all of the arbitrator’s fees and costs. The employee is not required to pay any of the arbitrator’s fees or costs.
Attorneys – As noted above, the employee normally will pay his or her own attorneys’
fees in the first instance. In some instances, provisions for the payment of legal fees are governed by local, state, or federal statutes. In these cases, the prevailing party may recover its attorneys’ fees from the losing party under the normal rules of law providing for fee-shifting.
Facilities – The hearing will take place in or near the city in which the employee is or was last employed by Alorica. Usually, the hearing will be held at a location independent of both parties (such as a local JAMS office). Alorica facilities may be utilized if both parties agree. Any costs incurred for such facilities, whether at Alorica or elsewhere, will be paid by Alorica.
28. Q. Is this an employment contract?
A. No, it is simply an arbitration agreement.
29. Q. Does this Agreement change the at-will status of my employment?
A. No. Your employment continues to be “at-will” and may be terminated at any time, with or without cause, and with or without notice, at Alorica’s or your discretion.
30. Q. Whom should I contact at Alorica if I have more questions?
A. Please direct any questions to [email protected].
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ARBITRATION AGREEMENT OPT-OUT FORM
INSTRUCTIONS — PLEASE READ CAREFULLY:
IF YOU DO WANT THE AGREEMENT REGARDING ARBITRATION OF DISPUTES SENT WITH THIS FORM TO APPLY TO YOU, THEN YOU DO NOT NEED TO DO ANYTHING AND MAY DISREGARD THIS FORM.
IF YOU DO NOT WANT THE AGREEMENT REGARDING ARBITRATION OF DISPUTES SENT WITH THIS FORM TO APPLY TO YOU, AND YOU CONTINUE TO WORK FOR ALORICA AFTER JANUARY 17, 2022, THEN YOU MUST COMPLETE THIS FORM AND EMAIL A SCANNED COPY OR PHOTO OF THE COMPLETED FORM TO [email protected] BY NO LATER THAN 11:59 P.M. EASTERN STANDARD TIME ON JANUARY 17, 2022.
OPT-OUT NOTIFICATION:
I have received a copy of the Agreement Regarding Arbitration of Dispute sent with this opt-out form and choose not to enter into it. I understand that submitting this form will not cancel any arbitration agreement that I have previously signed with the company or affect my obligation to arbitrate disputes under the terms of any existing agreement.
Dated: ___________________ _______________________________________
Signature
_______________________________________
Print Name
_______________________________________
Address
_______________________________________
City, State, Zip Code
_______________________________________
Telephone Number, Including Area Code
