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

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.