US Supreme Court Holds That Employers Can "Waive" Goodbye to Class Actions
On May 21, 2018, the Supreme Court of the United States held that employers and employees can agree that any and all disputes between them will be resolved through single claimant arbitration. The Court's ruling stated that under the Federal Arbitration Act, arbitration agreements are to be enforced according to their terms, including terms that provide for individualized proceedings only. The decision validated a waiver of the right to bring a class action and the right to arbitrate as a group/class. In doing so, the Court rejected the National Labor Relations Board’s argument that class action waivers were not permissible.
TAKEAWAY: Employers should consider instituting mandatory arbitration provisions--that include a class action waiver.
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