Kim v. The Avon Company, LLC

Background

Min Kyoung Kim alleged that LG H&H USA, Inc. and New Avon Company discriminated against him because of his national origin, subjected him to a hostile work environment, and terminated his employment unlawfully. He brought claims under Title VII of the Civil Rights Act of 1964, the New York State Human Rights Law, and the New York City Human Rights Law.

The defendants moved under the Federal Arbitration Act to compel arbitration. LG also moved under Federal Rule of Civil Procedure 12(b)(6) to dismiss the claims against it for failure to state a claim. Kim did not respond to the motion.

Arbitration Agreement

The court found no factual dispute that Kim electronically signed Avon’s arbitration agreement during the onboarding process. The agreement required arbitration of nearly all disputes arising from or related to Kim’s employment, including discrimination, harassment, termination, and claims under Title VII and other state or federal laws.

The court held that Kim’s claims fell within the agreement’s scope. It also held that the agreement covered LG because LG was alleged to be Avon’s parent company and therefore an affiliated entity and equity holder covered by the agreement. The court treated LG as a third-party beneficiary entitled to enforce the agreement.

The court also noted that the Supreme Court has held that Title VII claims are subject to arbitration. The agreement allowed Kim to file charges with administrative agencies such as the Equal Employment Opportunity Commission, but that exception did not remove his court claims from arbitration.

Ruling and Disposition

The motion to compel arbitration was GRANTED. Because all claims were being sent to arbitration and the defendants requested a stay, the court STAYED the case pending the conclusion of arbitration.

The court did not address LG’s motion to dismiss for failure to state a claim. The Clerk of Court was directed to close the docket entry for the motion.