SCOTUS Upholds Class-Action Waivers

By Bryan Stillwagon

May employees and employers agree that any disputes between them will be resolved only through one-on-one arbitration? Today, the Supreme Court responded, “YES.”

In a 5-4 decision, the Court held in Epic Sys. Corp. v. Lewis, Ernst & Young LLP et al. v. Morris et al., and NLRB v. Murphy Oil USA, Inc., that employers may reach enforceable agreements with their employees that the employees will not bring class or collective actions. In recent years, employees have argued that the forced waiver of class- and collective-action procedures violated the Arbitration Act’s savings clause and the NLRA’s right to engage in collective action. Rejecting those arguments, the Court leaves intact a beneficial tool for employers in avoiding costly multi-plaintiff actions.

Read our full advisory here.