Why Employers May Want Arbitration Agreements with Employees

In a long-awaited decision issued on May 21, 2018, the United States Supreme Court found that arbitration agreements that require employees to arbitrate their claims on an individualized basis (i.e., contain a class action waiver restricting employees from pursuing class or collective actions) are enforceable under the Federal Arbitration Act (FAA). In coming to this decision, the Supreme Court rejected the argument that such waivers violate Section 7 of the National Labor Relations Act (NLRA), which prohibits employers from restricting employees from engaging in concerted activity in regard to the terms and conditions of their employment. More


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Labor & Employment