Certainty Is Coming: United States Supreme Court Will Review NLRB Rule That Class Action Waivers Are Unenforceable.
Certainty Is Coming: United States Supreme Court Will Review NLRB Rule That Class Action Waivers Are Unenforceable
By: Jacquelyn E. Larson
On Friday, January 13, 2017, the United States Supreme Court agreed to review three cases addressing class action waivers in employment arbitration agreements. Since 2012, the National Labor Relations Board has consistently held that class action waivers violate the National Labor Relations Act.
Various high courts have come to different conclusions regarding class action waivers. The three federal Circuit Court cases will be consolidated and heard together by the Supreme Court during its current session, which runs through June or July of this year. Oral arguments have not been set, but since the Court’s oral argument calendar is filling up fast, the matter will not be heard until at least March, with a decision not likely until later in the session.
The Supreme Court is theoretically going to settle this issue as they have in the past. The Supreme Court has historically favored arbitration, and has previously enforced class action waivers.
COUNSEL TO MANAGEMENT:
Given the differing legal decisions in this area, the Supreme Court’s decision will hopefully provide clarity regarding the enforceability of class action waivers. Until that time, if you have questions regarding your arbitration agreements with employees, please contact the experts at The Saqui Law Group.