Employers May Include Class Waivers in Arbitration Agreements

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Since January 2012, employers nationwide have had to grapple with uncertainty about whether they can include class-action or collective-action waivers in their employment-arbitration agreements. Today, the U.S. Supreme Court resolved that uncertainty—they can. In a 5–4 decision, the Court held that including those waivers is not a violation of the National Labor Relations Act (NLRA) and the Federal Arbitration Act (FAA) requires courts to enforce those waivers in arbitration agreements according to their terms.

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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.

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