Today employers woke to the welcome news that the United States Supreme Court has determined that class action waivers in mandatory employment arbitration agreements (i.e. without an “opt out” provision) are valid and enforceable. In Epic Systems Corporation v. Lewis, the Supreme Court rejected the argument that class action waivers violate employees’ rights under Section 7 of the National Labor Relations Act (NLRA) to engage in “protected concerted activities.” With today’s decision, employers can take an important step to defend against costly wage and hour class and collective actions and adopt carefully drafted mandatory arbitration agreements that contain enforceable class action waivers.
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