No More Strength in Numbers: Class Action Waivers Are Legal
The Supreme Court of the United States (SCOTUS) has ruled that class action waivers in employment arbitration agreements do not violate the National Labor Relations Act (NLRA) in Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; and National Labor Relations Board v. Murphy Oil USA, Inc., et al., No. 16-307 (May 21, 2018).
This is significant for employees, especially executives to read your employment contract carefully upon offer to understand how your right to sue is being limited by arbitration clauses and class action waivers.
For employers the rulings are also relevant in that it can be used to limit your organization’s exposure to litigation through expertly drafted arbitration agreements.