On October 5, 2026, Crosner Legal filed its response brief in the Ninth Circuit defending a Western District of Washington order that refused to send a putative wage and hour class action to individual arbitration. The question: when a temp worker is hired on directly by the company where she was placed, can that company use the arbitration agreement she signed with her former staffing agency to force her claims out of court? The district court said no. We are asking the Ninth Circuit to affirm.
Background
In 2022, our client signed an arbitration agreement with a national staffing agency, which placed her as a temp at an Idaho-based industrial supply company’s Washington operations. In December 2022, the company hired her directly, her agency employment ended, and she completed the company’s onboarding paperwork, which did not include an arbitration agreement.
She later filed a proposed class action on behalf of the company’s direct-hire employees for her allegedly denied rest and meal breaks, off-the-clock work, and failure to pay all wages owed. The claims are limited to the period of direct employment. The company denies the allegations.
The company moved to compel arbitration under the staffing agency’s agreement, which it never signed. The district court denied the motion, holding the agreement covered only claims arising from employment with the agency and its clients, and that employment ended at direct hire.
Some Of Our Arguments on Appeal
Courts decide whether an agreement exists. Under Granite Rock and the Ninth Circuit’s decisions in Ahlstrom and Olson v. FCA US, whether the parties formed an arbitration agreement that applies to the dispute is always for the court, even when the agreement contains a delegation clause. A non-signatory cannot invoke a delegation clause without clear and unmistakable evidence the plaintiff agreed to arbitrate arbitrability with non-signatories.
The plain language does not reach this dispute. The agreement covers claims arising out of employment “with the Company,” meaning the agency and its clients. That relationship ended at direct hire. A Washington appellate court construing nearly identical language in a temp-to-hire case held “employment” means the specific job tied to the agreement, not a later, separate relationship.
No presumption of arbitrability for a non-signatory. The federal policy favoring arbitration enforces agreements according to their terms; it does not help a party that never signed one. The company bears the full burden.
The class action waiver falls with the agreement. Because the agreement does not apply, neither does its class waiver. Washington courts have also held such waivers unconscionable in employment agreements, and FAA preemption applies only where a valid, applicable arbitration agreement exists.
Why It Matters
Temp-to-hire arrangements are common. If client companies could inherit staffing agency arbitration agreements, workers would carry an arbitration clause from job to job, benefiting employers they never contracted with. If you were hired on after a temp placement and your new employer never asked you to sign its own arbitration agreement, the agency’s agreement may not cover claims about your new employer’s conduct.
Talk to a Washington Employment Attorney
Crosner Legal represents workers in wage and hour class actions across Washington, Oregon, California, and Illinois. If you were hired on after a temp placement and believe your new employer denied you breaks or wages, or required you to sign a non-compete or non-solicitation agreement as an hourly employee, contact us at (866) 276-7637 or through our website for a free and confidential case evaluation.
This post is attorney advertising and is provided for general informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. The allegations described are allegations only; the defendant denies them, and no court has ruled on the merits. The appeal is pending. Prior results do not guarantee a similar outcome.