class action waiver

Fifth Circuit: Mandatory Class Action Waivers Do Not Violate the NLRA

September 10, 2017/0 Comments/in HR Alerts /by ManagEase

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All Employers with LA, MS, TX Employees

EFFECTIVE

August 7, 2017

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In a recent decision, the Fifth Circuit reaffirmed its positions that mandatory class action waivers do not violate Section 7 of the National Labor Relations Act (“NLRA”). In Convergys Corp. v. NLRB, the Fifth Circuit stated that an employee’s right to a collective action is procedural, not substantive, and signing a waiver therefore did not violate any substantive rights under the NLRA.

NLRB General Counsel Issues Memo on the Supreme Court’s Pending Class Action Waiver Decision

March 6, 2017/0 Comments/in HR Alerts /by ManagEase

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All Employers

EFFECTIVE

January 26, 2017

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(888) 378-2456

The U.S. Supreme Court recently announced its intention to review the split of authority among circuit courts regarding class action waivers in arbitration agreements. In the meantime, employers have wondered whether similar cases currently in progress with the National Labor Relations Board (“NLRB”) will be suspended pending the Supreme Court’s decision. The NLRB’s general counsel issued a memo instructing regional directors on how to proceed with similar cases.

U.S. Supreme Court to Resolve Split on Validity of Class Action Waivers in Arbitration Agreements

February 6, 2017/0 Comments/in HR Alerts /by ManagEase

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All Employers

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Expected Summer 2017

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(888) 378-2456

Last year, we reported on the Ninth and Seventh Circuit cases stating that class action waivers in arbitration agreements are invalid under the National Labor Relations Act (“NLRA”). The Second, Fifth and Eighth Circuits have taken the opposite stance, concluding that employment agreements that require claims to be arbitrated individually are fully enforceable.

Due to this split in opinion, the U.S. Supreme Court has finally decided to review the issue at hand. The Supreme Court will be reviewing three decisions: the Fifth Circuit’s ruling in favor of enforcing class action waivers, and the Ninth and Seventh Circuit’s rulings against. A decision is anticipated sometime in the Summer of this year.

Employers should stay tuned, as the outcome of the Supreme Court’s review could affect workplace employment agreements. ManagEase will continue to report on this developing area as updates occur.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

Ninth Circuit: Mandatory Class Action Waivers in Arbitration Agreements Are “Illegal”

September 6, 2016/0 Comments/in HR Alerts /by ManagEase

APPLIES TO

Employers with Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon and Washington Employees

EFFECTIVE

August 22, 2016

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(888) 378-2456

The Ninth Circuit has stated that use of mandatory class action waivers in arbitration agreements are prohibited, becoming the second federal circuit court to strike down such agreements. In short, employers in the states covered by the Ninth Circuit cannot require employees to sign an agreement giving up their right to class action/collective claims as a condition of employment.

Seventh Circuit States Class Action Waivers in Arbitration Agreements are Invalid

June 10, 2016/0 Comments/in HR Alerts /by ManagEase

APPLIES TO

All Illinois, Indiana, and Wisconsin Employers

EFFECTIVE

May 26, 2016

QUESTIONS?

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(888) 378-2456

In Lewis v. Epic Systems Corporation, the Seventh Circuit Court of Appeals unanimously stated that arbitration agreements that prohibit collective arbitration or collective actions, including class, collective and representative actions, violate Section 7 of the National Labor Relations Act (“NLRA”).

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