A Win for Employers: US Supreme Court Rules Class Waivers Are Lawful

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The Supreme Court clarified that employers who maintain or adopt arbitration agreements with class waivers may avoid class action wage and hour lawsuits, clearing the way for employers to reduce potential exposure.

The US Supreme Court has ruled in Epic Systems Corp. v. Lewis that arbitration agreements in which employees waive their right to bring class or collective actions, and are limited to bringing their claims on an individual basis in arbitration, are enforceable. The ruling resolves recent confusion concerning the enforceability of such waivers.

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