Court Rules Employer Waived Right to Compel Arbitration of Wage Claims

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A federal court in Virginia has ruled that Entertainment Events LLC (REE) waived its right to compel arbitration of wage claims brought by former employees Kelvin Darkwa, Khadijah Vasser, Victoria Elizabeth Hric and Zoe Ray. The court found that by re-requesting a hearing on a previously-filed motion to dismiss, participating in that hearing, and seeking a ruling from the court, REE acted inconsistently with its right to arbitrate the dispute and intentionally relinquished that known right.

Why it matters

This ruling highlights the importance of employers promptly asserting their right to compel arbitration, as courts will find waiver if the employer substantially participates in litigation. The decision also underscores the ongoing tension between employers' desire to resolve disputes through private arbitration and employees' efforts to litigate wage and hour claims in court.

The details

The plaintiffs allege that REE violated the Fair Labor Standards Act and the Virginia Wage Payment Act by failing to pay them earned hourly wages and tip wages for work performed at the Richmond Raceway in August 2024. REE initially filed a motion to dismiss, but later re-requested a hearing on that motion and participated in the hearing, ultimately seeking a ruling from the court. The court found that these actions were inconsistent with REE's right to compel arbitration, which it had known about since October 2025, and therefore constituted a waiver of that right.

• On October 31, 2025, the court denied REE's motion to dismiss.
• On October 9, 2025, REE had knowledge of its right to compel arbitration.
• On October 16, 2025, REE's counsel re-requested a hearing on the then-outstanding motion to dismiss.

What’s next

The judge's ruling denies REE's motion to stay the case and compel arbitration, allowing the wage claims to proceed in court.