In a recent ruling, a federal Arizona judge ordered a former Barrett Financial Group employee to arbitrate her unpaid overtime claims under the Fair Labor Standards Act (FLSA). The decision reinforces a growing trend among employers who use arbitration agreements to avoid defending collective action wage and hour lawsuits in court.

The lawsuit, Blair v. Barrett Financial Group LLC, was filed as a collective action under the FLSA. The plaintiff, Jennifer Blair, alleged that Barrett Financial failed to pay her—and other similarly situated employees—overtime wages for hours worked over 40 per week. After the case was filed, and just as the plaintiff moved for conditional certification, Barrett responded with a motion to compel arbitration.

At the heart of the dispute was a mandatory arbitration agreement that Blair signed during her employment. The contract required employees to resolve all workplace legal claims—including wage claims—through private arbitration. It also included a waiver of class and collective action rights, meaning employees could only pursue claims individually, not as a group.

The court found that the arbitration agreement was enforceable and stayed all discovery while the arbitration issue was decided. The judge cited the Federal Arbitration Act (FAA) and noted that compelling arbitration promotes the law’s goal of efficient, out-of-court dispute resolution. Because the plaintiff and other potential opt-in employees had all signed similar arbitration agreements, the court held that the motion to compel arbitration could potentially dispose of the entire case.

The plaintiff also asked the court to prevent Barrett Financial from contacting other current or former employees about the case, alleging that the company had attempted to intimidate potential witnesses. Although the judge acknowledged those concerns, the request was denied as premature.

What This Means for Employees with Unpaid Overtime Claims

Employers in the financial services industry and beyond are increasingly using arbitration agreements to limit liability in unpaid wage lawsuits. These agreements often include language that bars class or collective actions, making it harder for groups of employees to band together.

However, signing an arbitration agreement does not waive your right to be paid overtime that is legally required. Workers can still pursue claims for unpaid wages, either in court or through arbitration, and may be entitled to recover:

• Back pay for unpaid overtime
• Liquidated (double) damages
• Attorney’s fees and court costs

Were You Paid a Salary or Commission and Denied Overtime Pay?

If you worked for Barrett Financial Group—or any company in financial services—and were paid a salary or commissions without overtime, you may have a valid claim under the FLSA. Many employers wrongly assume that salaried employees or those paid on commission are not entitled to overtime. That is often not true under federal law.

You can still take legal action even if you signed an arbitration agreement. I represent employees who have been misclassified or denied overtime, including those bound by arbitration agreements.

Contact me today for a free, confidential case review.
I’ll explain your rights and help you recover the wages you’ve earned if you are owed such wages.