U.S. Supreme Court Determines that Class Action Waivers are Legal

U.S. Supreme Court Determines that Class Action Waivers are Legal

May 24, 2018

On May 21, 2018, the U.S. Supreme Court upheld the legality of class action waivers in individual employment agreements. This means that employees who sign a class action waiver are prohibited from bringing a class action, both in litigation or in an arbitration.

In the case Epic Systems v. Lewis, the U.S. Supreme Court decided three consolidated cases. The Court found that class actions are not “concerted activities” protected under the National Labor Relations Act and further, that the Federal Arbitration Act requires enforcement of arbitration agreements, including the terms of arbitration selected by the parties. The four dissenting justices believed class action waivers to be unfair labor practices under the National Labor Relations Act, and therefore, should not be enforceable.

By: Dale A. De Felice