EXTRA! EXTRA! Supreme Court Ruling Favors Businesses!


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SUPREME COURT: Businesses Gain Powerful Tool Against Employee Class Actions
On May 21, 2018, the United States Supreme Court held that employers can require employees to participate in individual arbitration proceedings to resolve employment disputes rather than pursuing such claims as a class action.

The decision involved the interplay between two relatively old federal laws: the 1925 Federal Arbitration Act (“FAA”) and the 1935 National Labor Relations Act (“NLRA”). The FAA allows parties to agree to privately resolve disputes through arbitration. It requires courts to enforce the terms of arbitration agreements that the parties select. The NLRA guarantees employees the right to self-organize, including to engage in Section 7 “concerted activities.” The question before the Court was whether the NLRA’s Section 7 provisions protect employees’ ability to proceed collectively against employers in class action litigation.

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