Employment Law Alerts

Supreme Court OK's Class Waivers in Employment Arbitration Agreements

Posted on May 21, 2018 at 3:05 PM

Topics: 2018, National Labor Relations Board, Wage and Hour, Arbitration

In a big win for employers, the U.S. Supreme Court has ruled that the Federal Arbitration Act (FAA) requires courts to enforce mandatory arbitration agreements that contain class waiver provisions. This new decision in a trio of cases -- Epic Systems Corp., Murphy Oil USA Inc., and Ernst & Young LLP -- rejects the argument that class waivers violate Section 7 of the National Labor Relations Act (NLRA) because they interfere with the enforcement of employee rights under the Fair Labor Standards Act and related state wage and hour laws.

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