Ex-CarMax Employee Must Arbitrate Individual Unpaid Wage Claims

CarMax Auto Superstores Inc. won its bid in federal court to compel arbitration for claims in a former worker’s proposed wage and hour class action after he sought to remand the case to a state court.

Jorge Serrano worked as a non-exempt employee of CarMax before filing his suit, alleging nine violations under California’s Labor Code as well as the state’s Business and Professions Code. On behalf of a proposed class, he alleges that CarMax failed to pay workers for all hours worked, provide rest periods, and maintain accurate records of the workers’ hours—among other claims.

The arbitration agreement ...