While many MuniBlog readers may be waiting on a decision in Janus v. American Federation of State, Municipal, and County Employees, on May 21 the Supreme Court rendered a decision in Epic Systems Corp. v. Lewis should not be ignored.  In Epic the question presented, in this consolidated case of 3 separate lawsuits, is whether private-sector employees may collectively sue their employers (class action lawsuit) for damages had arbitration clauses in their employment contracts which forbid such action.  The employees argued that such conditions violated the Fair Labor Standards Act while the employers argued that the Arbitration Act prohibited anything other than enforcing the arbitration clause.

The Court, in a 5-4 decision, ruled that private employers may enforce individual arbitration clauses, thereby prohibiting class-action suits and “the rights of workers to band together to challenge allegedly illegal actions by their employer”.

The Court is currently considering a separate question in Janus, whether a state law requiring public sector employees and represented by unions share in the cost of collective bargaining by paying “fair share” fees which may not be used for politics or lobbying and are not union dues.  The plaintiff, Mark Janus, is seeking to be released from paying "fair share” fees to the union that represents him in Illinois but is a union he has not joined.

Will unions “suffer” two defeats in a little under two months (a decision in Janus is expected in June)?  While the decision in Epic cannot be read as a guaranty of the Court’s leanings for a decision in Janus, unions may be ill at ease.  MuniBlog will, of course, update subscribers when a decision is rendered in this case.