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As we previously reported, in D.R. Horton, the NLRB held that a mandatory arbitration agreement that waives employees’ rights to participate in class or collective actions is unlawful under the National Labor Relations Act...more
In recent years, employers have faced increased, and increasingly expensive, class action litigation from current and former employees. In response, many employers have turned to arbitration agreements with class-action...more
On Tuesday, a divided 5th Circuit panel held that an employer does not violate the National Labor Relations Act (NLRA) by requiring its employees sign an arbitration agreement prohibiting them from bringing class or...more
The Fifth Circuit Court of Appeals refused to enforce critical portions of the NLRB’s decision in D.R. Horton, Inc., including its decision that class action waivers in arbitration agreements violated the National Labor...more
Court disagrees with the National Labor Relations Board’s D.R. Horton holding that arbitration agreements with a class/collective action waiver violate the National Labor Relations Act if the agreement is a condition of...more
On December 3, 2013, the U.S. Court of Appeals for the Fifth Circuit rejected the National Labor Relations Board’s (NLRB) ruling that an employer violates the National Labor Relations Act (NLRA) by requiring employees to...more
Arbitration is quickly becoming a major vehicle to resolve individual employee disputes. Now another obstacle to enforcing those arbitration agreements and class action waivers may have been removed.
Employers can avoid class claims by entering agreements that require individual arbitration, but they should review those agreements to ensure that they contain clear exceptions for employees’ right to pursue unfair labor...more
In a long awaited decision, D.R. Horton v. National Labor Relations Board, (Case. No. 12-60031, Dec. 3, 2013), the Fifth Circuit Court of Appeals vacated the January 2012 ruling of the National Labor Relations Board ("NLRB")...more
Just last week Mintz Levin presented a webinar on how employers can use arbitration agreements as a tool to avoid exposure to wage and hour and other class actions. The thesis of the webinar was that recent Supreme Court and...more
In a case likely to affect employer-employee arbitration agreements, one court has ruled that a court, and not an arbitrator, must determine whether ambiguous arbitration agreements cover class claims. Reed Elsevier, Inc. v....more
Just four months ago, SCOTUS suggested (but did not hold) that the decision to allow class arbitrations might be a “gateway” issue of arbitrability that defaults to courts. This week, the Sixth Circuit was the first to take...more
No haunted house can scare general counsel as much as an opinion invalidating their company’s arbitration clause and thereby allowing a class action to proceed. So, here is a Halloween tale for all to keep in mind....more
A number of recent court decisions have addressed the enforceability of contract clauses that call for alternative dispute resolution procedures instead of traditional courtroom litigation.
For banking executives and in-house counsel, arbitration can be a preferable alternative to litigation to avoid costly trials and home-town advantages. In this article, we highlight four recent court decisions that affect the...more
It is rare these days for a court to deny a motion to compel arbitration. It is especially surprising to find such a decision where the parties are subject to an arbitration agreement. Using the fundamental principle...more
The U.S. Supreme Court addressed contract terms bearing on the availability of class arbitration in two opinions this term. The first, Oxford Health Plans LLC v. Sutter, confirms a district court’s limited power under the...more
RECENT CASE SUMMARIES -
GOOD NEWS FOR ARBITRATORS FROM THE SUPREME COURT?
Oxford Health Plans LLC v. Sutter, 133 S. Ct. 2064 (2013).
In a non-reinsurance case, the United States Supreme Court recently...more
Given a recent uptick in court rulings enforcing class action waivers, it may be time to revisit whether your company prefers to resolve disputes with employees in court or through arbitration. Class action waivers in...more
On August 21, 2013, the U.S. Court of Appeals for the Ninth Circuit became the fifth circuit court to hold that class action waivers in arbitration agreements are enforceable in the context of wage and hour class action...more
In American Express Co. v. Italian Colors Rest., 133 S. Ct. 2304 (June 20, 2013), the U.S. Supreme Court ruled, in an antitrust case, that an arbitration agreement that waives the right to proceed on a class basis is...more
Over the past week, the United States Court of Appeals for the Second Circuit (“Second Circuit”) has issued two decisions in which it affirmatively held that: (i) a plaintiff cannot use the “effective vindication doctrine” to...more
Mandatory arbitration agreements are an important tool in managing litigation risk and cost. Oftentimes, however, the pressures of drafting an arbitration agreement palatable to all involved parties result in sparse...more
Eight days prior to the Supreme Court’s decision in American Express Co. v. Italian Colors Restaurant, 133 S.Ct. 2304 (2013) (“AMEX”) (which we blogged here), the Massachusetts Judicial Court held that the Federal Arbitration...more
By the end of this year’s term, the United States Supreme Court had issued three “employer-friendly” decisions. While the decisions do not dramatically alter the employment law landscape, employers will still welcome the...more