SCOTUS Upholds Class-Action Waivers

Sherman & Howard L.L.C.
Contact

Sherman & Howard L.L.C.

May employees and employers agree that any disputes between them will be resolved only through one-on-one arbitration? Today, the Supreme Court responded, “YES.”

In a 5-4 decision, the Court held in Epic Sys. Corp. v. Lewis, Ernst & Young LLP et al. v. Morris et al., and NLRB v. Murphy Oil USA, Inc., that employers may reach enforceable agreements with their employees that the employees will not bring class or collective actions. In recent years, employees have argued that the forced waiver of class- and collective-action procedures violated the Arbitration Act’s savings clause and the NLRA’s right to engage in collective action. Rejecting those arguments, the Court leaves intact a beneficial tool for employers in avoiding costly multi-plaintiff actions.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sherman & Howard L.L.C. | Attorney Advertising

Written by:

Sherman & Howard L.L.C.
Contact
more
less

Sherman & Howard L.L.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide