Supreme Court Will Determine Whether Employers May Use Class Action Waivers in Employment Arbitration Agreements

The United States Supreme Court will decide the validity of class action waivers within employment arbitration agreements.[1]  On January 13, 2017, the Supreme Court granted certiorari to and consolidated three separate petitions requesting that the Court review this issue.[2]  The Court has yet to set a date for oral argument, but will likely decide this issue before taking its summer recess in late June 2017.   Currently, there is a deep split in the federal appellate courts regarding whether employment arbitration agreements that contain class action waiver clauses are enforceable, as two federal appellate courts have found such agreements unenforceable, and four federal appellate courts have held such agreements are valid (see related article). 

This is an extremely important issue for employers across the country, and Campbell Litigation will continue to track all developments and report back when further updates are available.

 

[1] See NLRB v. Murphy Oil USA, Inc., No. 16-307 (U.S. cert. granted Jan. 13, 2017). 

[2] Lawrence E. Dubé, Justices Will Consider Class Action Waivers, Bloomberg BNA, Daily Labor Report (Jan. 13, 2017).  

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