Alamo Rent A Car, Inc. v. Galarza

In Alamo Rent A Car, Inc. v. Galarza, 306 N.J. Super. 384, 389, 703 A.2d 961 (App.Div.1997), the Court held that an employee may agree to arbitrate statutory claims under the Law Against Discrimination (LAD). Alamo Rent A Car, supra, 306 N.J. Super. at 389. On the other hand, the Court also held that the agreement did not preclude resort to the court to pursue statutory remedies. Id. at 392, 703 A.2d 961. The Court noted that the agreement between Alamo and its employee established a series of terms and conditions of employment, two of which were the rights to be free from discrimination and harassment. The agreement also established that any dispute concerning terms and conditions of employment was to be submitted to arbitration. The Court noted the substantial distinction between a breach of a term and condition of employment and the full panoply of statutory rights and remedies concerning unlawful discrimination in the workplace expressed in the LAD. Id. at 393, 703 A.2d 961. The Court held that the specific language of the employment agreement referring to arbitration disputes only concerning the terms and conditions of employment was insufficient to constitute a knowing and voluntary waiver of the employee's statutory rights and remedies for discriminatory conduct in the workplace. Id. at 392, 703 A.2d 961. The arbitration clause stated "if I claim that the employer has violated this FamPact, I agree that the dispute shall be submitted to and resolved through binding arbitration administered by the American Arbitration Association." Id. at 391, 703 A.2d 961. The Court held that "the most that can be said of the clause is that it mandates that if plaintiff claims the FamPact was violated, the dispute must go to arbitration. It does not suggest, let alone mandate, that claims arising other than out of the FamPact must also be resolved in that forum." Id. at 392, 703 A.2d 961. The Court determined that "an employee may, by contract, give up his or her right to pursue a statutory LAD remedy in favor of arbitration." The court explained: The fact that what is at issue is a statutory remedy does not, in itself, affect the favored status accorded to arbitration. . . . There is no indication in the text or legislative history of LAD that members of the classes protected by that statute cannot waive the statutory process and agree to arbitrate the dispute.306 N.J. Super. at 389, 703 A.2d 961.