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Employers May Prohibit Employees From Opting In To Class Actions

Last year, in Epic Systems Corp v. Lewis, the Supreme Court held that employers act lawfully when they require employees, as a condition of employment, to enter into agreements with the employer waiving their rights to pursue employment claims through class or collective actions and stipulating that any such disputes would be resolved by individualized […]

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JM
Of Counsel

United States Supreme Court Continues Its Trend of Enforcing Individual Employment Arbitration Agreements

Approximately one year ago, the United States Supreme Court issued its landmark decision in Epic Systems v. Lewis, 548 U.S. ___ (2018), holding that class action waivers contained in arbitration agreements, including agreements between employers and their employees, are permissible and enforceable. See here. That decision left open, however, the question of: what if the arbitration […]

BH
Of Counsel

Transportation Workers Get a Green Light to Ignore Arbitration Agreements for Wage Claims

The California Court of Appeal in Nieto v Fresno Beverage Company took the position that a driver who delivered beverages solely within the state of California was nonetheless a “transportation worker” who was exempt from the Federal Arbitration Act (“FAA”) provisions that encourage a policy favoring arbitration. The court embraced the reasoning that “intrastate delivery […]

CJ

Supreme Court Blesses Employers’ Use of Class Action Waivers

As previously reported on October 13, 2017, see here, the Federal Courts of Appeal were evenly divided on the question of whether class action waivers contained in otherwise enforceable employment arbitration agreements were permissible.  Three Courts of Appeal, i.e., the Sixth, Seventh, and Ninth Circuits, had accepted the position advocated by the National Labor Relations […]

BH
Of Counsel

SCOTUS to Address Current Split Over Enforceability of Class Action Waivers Contained in Mandatory Arbitration Policies

Many employers have implemented mandatory arbitration policies requiring that all employment related disputes be resolved through final and binding arbitration rather than in traditional court proceedings. In addition to these potential benefits, many employers have added class action waivers to their arbitration policies, in essence requiring that claims be brought on an individual basis only, and […]

BH
Of Counsel

Ninth Circuit Invalidates Class Action Waivers Contained in Employment Arbitration Policies

The Ninth Circuit, currently joined by two other federal courts of appeal, has adopted the longstanding position of the National Labor Relations Board (“NLRB”) that class action waivers commonly found in employment arbitration agreements violate the right to engage in protected concerted activity pursuant to the National Labor Relations Act (“NLRA”).  Two other federal courts […]

BH
Of Counsel