Tip #1: Why Pharmaceutical, Biotech, and Life Science Clients with a Massachusetts Presence Should Consider Rolling Out An Arbitration Agreement—With A Class Action Waiver -

Until recently, there has been much debate about the enforceability of arbitration agreements containing class action waivers. Courts disagreed as to whether employers could enforce these agreements against workers seeking to sue on a class action basis. The debate is over. In 2018, the Supreme Court settled the issue. Arbitration agreements with class action waivers are enforceable to the same extent as other contracts. This means that a well-crafted and implemented arbitration program can provide insulation from bet-the-company wage and hour class action lawsuits.

An employment arbitration program is not right for every company. To be sure, there are pros and cons to arbitration. With few exceptions, however, every company with a sizeable workforce should at least conduct an analysis and make an informed decision about the usefulness and scope of an arbitration agreement.