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SCOTUS Holds that Class Action Waivers in Employment Contracts Must be Enforced

05/22/2018

Stephen A. Fogdall, chair of the Financial Services Litigation Practice Group, published an analysis of Epic Systems Corp. v. Lewis for the blog SchnaderFSB. The blog post discusses the landmark decision in which the U.S. Supreme Court ruled 5-4 that arbitration clauses in employment contracts requiring individual dispute resolution procedures and prohibiting class actions and other collective litigation procedures must be enforced under the Federal Arbitration Act.  The Court rejected the position taken by the National Labor Relations Board and some private plaintiffs that employees’ right to engage in “concerted activities” for their “mutual aid or protection” recognized in Section 7 of the National Labor Relations Act makes such class and collective action waivers unenforceable.  The Court issued its ruling in three consolidated cases:  Epic Systems Corp. v. Lewis, Ernest & Young LLP v. Morris and National Labor Relations Board v. Murphy Oil USA, Inc.  

 

Read Fogdall’s full analysis here.