Silverado Senior Living Must Defend Manager’s FLSA Suit in Court

Silverado Senior Living Management Inc. can’t force a former employee to arbitrate claims that she was fired for complaining about not being paid for after-hours work because the company’s arbitration policy was unenforceable, a federal trial court said.

Silvarado said Sabra Egbert, a former manager for the company, is bound by the arbitration policy in the company handbook because she signed an acknowledgment form.

The arbitration agreement is “illusory and unenforceable” under Texas law because the company reserved the right to unilaterally change it, the US District Court for the Southern District of Texas said Wednesday. “An arbitration agreement that ...