Staffing Firm Loses Arbitration Bid Appeal in Recruiters’ Suit

TEKsystems Inc. lost its appeal for a court order to compel some members of a wage and hour class action to arbitrate their claims.

A district court can refuse enforcement of an arbitration agreement under the federal rules of civil procedure, the US Court of Appeals for the Ninth Circuit said Wednesday. And “TEK’s actions fall within the scope of this broad authority” because the company subverted Rule 23 by turning the case—a typical opt-out class proceeding—into an opt-in proceeding, the court said.

TEK recruiters filed a class action against the company in 2022—seeking to represent current and former ...