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Supreme Court Finds Class Action Waivers Enforceable

Monday, May 28, 2018

(North American Meat Institute)

The U.S. Supreme Court ruled last week that employment agreements in which workers waive their rights to pursue class action claims are legal, rejecting the National Labor Relations Board's position that class waivers violate federal labor law. In a 5-4 decision, the Supreme Court held that employers are not in violation of the National Labor Relations Act if they include class waiver provisions in arbitration agreements that bar employees from joining class-action lawsuits to bring forward wage and workplace grievances. Instead, the Supreme Court ruled employers are allowed to compel employees to individually use arbitration to resolve labor disputes. Following this decision, courts will be required to enforce workplace arbitration agreements providing for individualized proceedings, in accordance with the Federal Arbitration Act. The law firm Winstead summarized the decision.

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